Thailand SEC Officially Approves First Spot Bitcoin ETF

The Securities and Exchange Commission (SEC) of Thailand has officially approved the country's first spot Bitcoin (BTC) exchange-traded fund (ETF). 

Thai regulatory authorities endorsed One Asset Management (ONEAM) as the first firm to launch a spot bitcoin ETF in Thailand, limited to high-net-worth individuals and institutional investors, as reported by the Bangkok Post. The approved ETF has an investment risk level of eight and is named ONE Bitcoin ETF Fund of Funds Unhedged (ONE-BTCETFOF-UI), scheduled to be distributed between May 31 and June 6. 

International regulatory agencies in the US and Hong Kong have evaluated the fund, which has a policy to invest in 11 top global funds to ensure liquidity and safety while storing coins in accordance with international standards. 

"An alternative asset with little correlation to other financial assets is a digital asset. "They are a good way to help investors diversify their investment risks," stated ONEAM CEO Pote Harinasuta. In comparison to the market capitalization of gold, which is $14 trillion, the total market capitalization of bitcoin is US$1.4 trillion. Demand for Bitcoin is growing as it becomes more popular, despite the fact that there is a 21 million-unit supply limit. For Bitcoin, we see high growth potential.

"The average yearly return on Bitcoin over the previous 11 years has reached 124%, and the average annual volatility has also increased to 83%. Investing in Bitcoin can yield good returns, but it is very volatile," said Mr. Pote. 

He stated that coin storage security is a key component of Bitcoin ETFs. According to him, when investing in ETFs, unitholders' data or coins will be distributed through custodians, who provide the same standard as institutional investors, i.e., offline coin storage that is extremely secure. 

There is also a plan to launch a second Bitcoin ETF, as MFC Asset Management is still awaiting SEC approval for an institutional and high-net-worth investor-only Bitcoin ETF. 

Bitcoin ETFs are becoming more well-known globally, particularly among foreign regulators, following the US SEC's approval earlier this year of funds that use ETFs to invest directly in spot Bitcoin. The establishment of ETFs that invest in both Bitcoin and Ethereum was approved by the Securities and Futures Commission of Hong Kong on April 30.

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