Thailand moves closer to Bitcoin, Ether ETFs with draft rules

Thailand’s Securities and Exchange Commission (SEC) has advanced its framework for locally listed spot Bitcoin and Ether exchange-traded funds (ETFs) from proposed principles to draft regulations while revising its approach to foreign digital asset custodians.

The regulator said Monday it is seeking feedback on two consultation papers. One contains draft regulations for Thai crypto ETFs, while the other proposes principles governing the qualifications of foreign digital asset custodians engaged by mutual and private funds investing in digital assets.

During the initial stage, asset managers could establish passive ETFs tracking Bitcoin (BTC) or Ether (ETH), the only two eligible crypto assets.

The draft regulations follow an April consultation on the framework’s broader principles. The SEC said most respondents supported the framework but provided feedback on custody arrangements, prompting the regulator to revise its proposed approach.

The framework forms part of Thailand’s ambition to become a global digital asset hub for institutions.

Bitcoin and Ether ETFs would trade on Thai stock exchange

Under the proposed rules, Bitcoin and Ether ETFs would trade exclusively on the Stock Exchange of Thailand (SET). Each ETF would track a single crypto asset and would need to maintain average net exposure of at least 80% of its net asset value to that asset over each accounting year.