Thailand Opens Door to Locally Listed Bitcoin and Ether ETFs

Thailand's new crypto rules take effect Oct. 16, allowing Thai asset managers to launch crypto ETFs on the local stock exchange, with bitcoin and ether initially eligible.

Thailand's securities regulator will allow local asset managers to launch exchange-traded funds (ETFs) tracking bitcoin or ether beginning Oct. 16, opening a new regulated route for investors to gain exposure to cryptocurrencies through the country's stock exchange.

The rules were issued on Thursday by Thailand's Securities and Exchange Commission (SEC) and are detailed in an announcement published on the regulator's website. They take effect Oct. 16.

Under the new framework, crypto ETFs must trade on the Stock Exchange of Thailand and track a single cryptocurrency, with at least 80% of a fund's net asset value exposed to that asset. Bitcoin and ether will be the only initial eligible cryptocurrencies, the regulator said. The funds must also use custodians regulated by the Thai authorities.

Investor safeguards form a core part of the regime. Investors will have to confirm they understand the risks before buying the ETFs, and brokers cannot lend clients money to buy crypto. In the initial phase, the SEC will not permit products that give non-institutional clients indirect access to foreign crypto ETFs, such as depositary receipts.

The change gives Thai investors a domestic ETF option for crypto exposure rather than relying on foreign-listed products or trading digital assets directly. Until now, Thailand has allowed only institutional and wealthy investors to invest in foreign crypto ETFs, while the regulator said last year it wanted to broaden the market beyond bitcoin.

Thai asset managers may outsource crypto investment management to licensed digital-asset fund managers under the rules. Regulated digital-asset custodians and other qualified firms will also be able to register as fund supervisors for crypto ETFs.

The SEC additionally amended its rules to let mutual funds and private funds invest in Thai crypto ETFs, subject to existing investment limits.

The approach places bitcoin and ether inside Thailand's conventional fund and exchange framework while adding custody, disclosure and suitability safeguards. It follows the regulator's 2025 plan to expand its ETF offering beyond bitcoin. With the rules effective Oct. 16, the near-term developments to watch are the first Thai-listed crypto ETF launches and whether the SEC widens eligibility beyond the initial two assets.

The domestic route arrives where crypto ownership is already comparatively widespread: Thailand reportedly has the most crypto users by country per capita, at 20%, which is higher than the U.S.' 13%. It also ranks above Nigeria, the Philippines and South Africa, which all have approximately 19.4% crypto owners, according to World.

Source: CoinDesk