Thailand Approves First Bitcoin ETF

Thailand has joined the Bitcoin exchange-traded fund (ETF) trend by approving One Asset Management (ONEAM) to launch a Bitcoin ETF, as reported by the Bangkok Post. However, access to the instrument will be limited to wealthy and institutional investors.

Thailand’s Bitcoin ETF

As approved by the Thai Securities and Exchange Commission (SEC), the ETF is named the ONE Bitcoin ETF Fund of Funds Unhedged and is scheduled to be distributed between May 31 and June 6. The Bitcoin ETF comes with an investment risk level of eight.

The approval came about two months after the Thai SEC amended its local rules to allow local asset management firms to launch private funds offering Bitcoin ETFs. However, the rule strictly limits the offerings to wealthy and institutional investors.

While ONEAM has received approval, MFC Asset Management is still waiting for regulatory approval for its Bitcoin ETF.

Maintaining Global Standards

The first Thai Bitcoin ETF has a policy to invest in 11 global funds to ensure liquidity and safety. It also highlighted the storage of cryptocurrencies with international standards. Interestingly, the Thai fund was reviewed by regulatory agencies in the US and Hong Kong before the approval.

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

“Investing in Bitcoin can offer good returns, but comes with high volatility,” Harinasuta added as his company recommends investors to allot only 5 percent of their portfolio to Bitcoin to obtain a return of about 8.9 percent per year. A portfolio without Bitcoin generates an annual return of 5.8 percent.

With Thailand onboard, several jurisdictions are now offering Bitcoin ETFs. However, instruments went mainstream with their approval in the US earlier this year. A total of eleven Bitcoin ETFs are now listed on US stock exchanges, with anticipation of the listing of Ethereum ETFs in the coming weeks or months.