Thailand is advancing plans to allow domestic spot cryptocurrency exchange-traded funds, with Bitcoin and Ether set to become the first eligible assets under a proposed framework. The Securities and Exchange Commission is now seeking public feedback on revised rules designed to expand investment choices while strengthening investor protections.
The proposal marks a significant step for Thailand’s regulated crypto market. However, the framework remains subject to consultation and has not yet created a live ETF market.
80% Minimum Crypto Exposure
Under the proposed rules, crypto ETFs would use passive management and seek to track the price performance of a single underlying cryptocurrency. Each fund must maintain average net exposure of at least 80% of its net asset value to that crypto asset over the accounting year.
The SEC said eligible cryptocurrencies must meet standards covering liquidity, broad market acceptance, network security and investor protection. Bitcoin and Ethereum would qualify during the initial phase.
The structure could give Thai investors regulated access to spot crypto exposure through the traditional capital market rather than requiring them to hold digital assets directly.
Stricter Custody and Investor Safeguards
The proposed framework would require crypto ETF assets to be primarily held with digital asset custodians supervised by the Thai SEC. The regulator has also proposed allowing overseas custodians when necessary and appropriate.
Funds would trade exclusively on the Stock Exchange of Thailand. Asset managers would need to provide clear information about fund structures, risks and investment mechanisms.
Investor protections would also include education and confirmation that investors understand the risks before trading. The SEC has emphasized avoiding excessive concentration in digital assets and matching investments with individual risk tolerance.
Thailand’s latest proposal builds on an earlier consultation launched in April. If finalized, the framework could strengthen the country’s digital asset ecosystem while bringing Bitcoin and Ether exposure closer to conventional regulated investment products.
