The Thailand SEC approved the first Bitcoin ETF, advancing digital asset adoption. OnEAM leads this project, offering safe, regulated investment options.
Thailand’s inaugural spot Bitcoin Exchange-Traded Fund (ETF) has received approval from the Thailand Securities and Exchange Commission (SEC), marking a significant milestone in the cryptocurrency market.
This momentous action signifies a major leap in the mainstream adoption of digital assets in Thailand, offering investors a regulated and accessible way to gain exposure to Bitcoin.
The approval of this ETF is anticipated to yield significant implications for the local and global crypto markets, serving as an indication of increasing regulatory backing and institutional confidence in Bitcoin and other cryptocurrencies.
ONEAM Leads the Charge with Bitcoin ETF
The Securities and Exchange Commission (SEC) has designated One Asset Management (ONEAM) as the first firm to launch a spot Bitcoin ETF in Thailand, aimed at wealthy and institutional investors.
With an investment risk level of eight, the ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI) will be accessible from May 31 to June 6.
Moreover, this fund is intended to invest in 11 major worldwide funds to provide liquidity and security, with coin storage meeting international standards and being examined by regulatory organizations in the United States and Hong Kong.
Additionally, MFC Asset Management is requesting SEC approval for a Bitcoin ETF that targets comparable investors.
According to Pote Harinasuta, chief executive of ONEAM, “Digital assets are an alternative asset that have low correlation with other financial assets. They are suitable to help investors diversify investment risks.”
Recent regulatory approvals by the US SEC and Hong Kong’s Securities and Futures Commission permit the establishment of Bitcoin ETFs and Ethereum ETFs, respectively, which are acquiring international recognition.
Regulatory Amendments and Investment Insights
In light of the U.S. SEC’s approval of Bitcoin ETF trading on January 11, the Thai SEC had previously declared amendments permitting asset management firms to establish private funds that invest in U.S. spot Bitcoin ETFs.
However, this decision reflects the global trend of heightened investor confidence in Bitcoin ETFs.
Despite the increasing interest from institutional investors, SEC secretary-general Pornanong Budsaratragoon highlighted the high-risk nature of these investments.
Bitcoin has the potential for high returns, according to Pote Harinasuta, who noted that its average annual return over the past 11 years has been 124%, in contrast to its high volatility of 83%.
Furthermore, he recommended that investors restrict their exposure to Bitcoin to 5% of their portfolio with the expectation of achieving an annual return of 8.90%.
Emphasizing the safety of investing via ETFs, where custodians store the data and coins of unitholders offsite, he emphasized the protection against data loss and theft, which have been issues with direct investments on other platforms.
