Thailand SEC Allows Asset Firms to Access Spot Bitcoin ETFs for Accredited Investors

Thailand’s Securities and Exchange Commission (SEC) has greenlit asset management firms in the country to launch private funds to offer Bitcoin (BTC) exchange-traded funds (ETFs). However, these private Bitcoin ETF funds will only be available for institutional investors and “ultra-high-net-worth individuals.” 

According to a March 12 report from the Bangkok Post, private funds managed by local asset management firms can invest directly in spot Bitcoin ETFs traded on United States exchanges. The Thai regulator’s board reportedly agreed to this decision last week.

Previously, regulations overseeing asset management firms’ investments did not cover digital asset ETFs. According to SEC regulations, asset managers are only allowed to facilitate trading assets classified as securities. However, after the US SEC approved spot Bitcoin ETFs in January, shares in spot BTC ETFs became defined as securities instead of crypto assets under Thai regulations.

SEC secretary-general Pornanong Budsaratragoon said the development aims to cater to the growing demand for digital asset exposure among institutional investors. However, she stressed the need for caution due to the high-risk nature of these investments. In January, the Thai regulator reportedly said it would not permit asset management firms to introduce their own version of spot BTC ETFs within the country.

Budsaratragoon stated:

“Asset management firms asked the SEC for them to have exposure in digital assets, especially Bitcoin and spot Bitcoin ETFs, but we need to consider carefully whether to allow asset management firms to invest in digital assets directly due to the high risk.” 

The decision to allow Bitcoin ETF investments came when the crypto market witnessed a bullish run. BTC recently reached a new all-time-high value beyond $71,000 and is currently heading towards $72,000. Increasing investment into US spot Bitcoin ETFs is the main reason behind this growth.

Retail Investors Left Out Amid Regulatory Changes

The latest rules have excluded the possibility for retail investors to access spot Bitcoin ETFs. Retail crypto trading is popular in Thailand, but its usage is limited. In March 2022, the government banned people from using crypto to pay for things, and just last July, the SEC stopped people from using crypto for loans or investments.

However, in January, the regulator removed restrictions on retail investors buying digital tokens linked to real estate or infrastructure projects. Binance revealed in January that Gulf Binance — a joint venture between Binance and Thailand’s Gulf Innova — introduced crypto exchange services for the public in Thailand.