Thai SEC Rejects Bitcoin ETFs, but Local Investors Can Invest Overseas

The approval of 11 Bitcoin exchange-traded funds (ETF) by the US securities market regulator has failed to convince its counterpart in Thailand, also named the Securities and Exchange Commission (SEC), to allow such products in the local Thai market.

No Bitcoin ETFs in Thailand

According to the Thai regulator, Bitcoin ETFs approved in foreign markets are still in very early stages, and such products may not be of direct economic value when it comes to the appropriateness of the Thai market.

“The SEC has been following these developments closely, but we do not have a policy to allow spot Bitcoin ETFs to be established in Thailand for the time being,” the local securities market regulator in Thailand stated, according to a report by Bangkok Post.

However, the securities brokerages in Thailand are already encouraging local investors to invest in Bitcoin directly through US spot Bitcoin ETFs. Meanwhile, the Thai SEC stressed that businesses must ensure appropriate investment advice for investors.

“Securities companies can provide services to retail customers to invest in foreign products, but they must have the same characteristics as products that can be offered for sale in Thailand,” the Thai regulator added.

#Bitcoin spot ETF volumes are crushing historical records. In the first 3 days, BlackRock’s IBIT did more volume than all 500 ETFs that were launched last year, COMBINED. So far, some 34,000 BTC have been acquired. 👇 https://t.co/ugd5hslWf0

A Milestone in the Crypto Sector

Bitcoin ETFs allow retail and institutional investors to get exposure to Bitcoin directly from their regular brokerage accounts. The products are expected to cut down the entry barriers to Bitcoin investments as they eliminate the need to set up wallets and deal with crypto exchanges.

The approval of Bitcoin ETFs in the US came after efforts of a decade. The regulator was reluctant to allow such products for years, citing various associated risks. However, the US regulator finally approved 11 Bitcoin ETFs in one go last week.

Meanwhile, several other countries, including Canada, Australia, and Switzerland, have already allowed the listing and trading of Bitcoin ETFs before the US. Though, in the US, ETFs based on Bitcoin futures have already existed since 2021.

Apart from Thailand, the South Korean financial market regulator confirmed that it would not permit the trading of Bitcoin ETFs on its domestic market.