Thailand opens consultation on Bitcoin and Ethereum ETF rules

Crypto ETFs tracking Bitcoin and Ethereum are moving closer to regulatory approval in Thailand as authorities work to expand the country’s digital asset market.

Thailand has advanced plans for locally established spot Bitcoin and Ethereum exchange-traded funds, with the Securities and Exchange Commission (SEC) opening a new consultation on draft rules. The proposed framework would require each ETF to maintain an average net exposure of at least 80% to its underlying cryptocurrency over an accounting year.

The first phase would allow asset managers to offer passive ETFs tracking either Bitcoin or Ethereum, with the products listed exclusively on the Stock Exchange of Thailand. The SEC said eligible assets would be assessed based on factors including liquidity, broad market acceptance, network security and investor protection, with Bitcoin and Ethereum qualifying for the initial phase. Fund managers would also need suitable systems, qualified staff and access to relevant digital asset service providers.

Investors would also face additional protection requirements, including education on the characteristics and risks of crypto ETFs and a requirement to acknowledge and confirm their understanding of those risks before trading. The SEC would also allow mutual funds and private funds to invest in Thai-domiciled crypto ETFs, subject to existing investment limits.