Thailand SEC Approves First Spot Bitcoin ETF

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Thailand recently approved its first Spot Bitcoin Exchange-Traded Fund (ETF), joining the global trend of countries offering crypto ETFs.

Thailand has taken a significant step in the global cryptocurrency landscape by becoming the first country in Southeast Asia to approve a Spot Bitcoin Exchange-Traded Fund (ETF). This move aligns Thailand with the growing trend of countries embracing crypto ETFs. 

Thailand Welcomes First Spot Bitcoin ETF

The Thailand Securities and Exchange Commission (SEC) has granted One Asset Management (ONEAM) permission to establish its Bitcoin ETF. However, spot Bitcoin ETFs in the country are not for retail investors, so this investment opportunity is exclusively available to a select group of wealthy and high-net-worth investors and institutions. This move reflects Thailand’s increasing interest in the cryptocurrency market and signals a potential shift in the global financial landscape.

The ONEAM Bitcoin ETF is designed to track the price of Bitcoin by investing in 11 existing funds worldwide. This strategic approach aims to mitigate investment risks by diversifying funds across various crypto sectors, potentially offering significant benefits to investors.

Pote Harinasuta, ONAEM’s Chief Executive, explains why the company focused on bitcoin ETFs:

 “Digital assets are an alternative asset that has low correlation with other financial assets. They are suitable to help investors diversify investment risks. Although the supply of Bitcoin is limited at 21 million, demand is rising as it gains popularity. We see high growth potential for Bitcoin.”

On the other hand, he advises investors to allot only 5% of their portfolio to bitcoin to get 8.9% returns per annum.  “Investing in Bitcoin can offer good returns but comes with high volatility,” he warned.

While ONEAM has received approval to start trading its Spot Bitcoin ETF in Thailand, other financial firms, like MFC Asset Management, await approval from the SEC soon. 

Spot Bitcoin ETF Overview

Following the U.S. Spot Bitcoin ETF approval in January, the cryptocurrency market has gained more popularity, as many investors can now venture into it with greater ease. In the first half of this year several regions have approved their first Bitcoin spot ETFs in their financial markets, with countries like Hong Kong and Australia already trading them. 

According to data from Farside, U.S.-traded spot bitcoin ETFs have ended more than 12 market days with inflows, and the price of bitcoin stood above $70,000 at press time. Since approval in April, Hong Kong ETFs have witnessed 22 market days of Inflows worth more than $70 million. 

The crypto market remains bullish on the introduction of ETFs and the U.S. SEC has approved proposals for Ethereum ETFs, which will begin trading soon.