The Securities and Exchange Commission (SEC) of Thailand has recently sanctioned the very first spot Bitcoin (BTC) exchange-traded fund (ETF) in the nation, exclusively catering to ultra high net-worth individuals.
The approval, as reported by the Bangkok Post, was granted to One Asset Management (ONEAM), a local asset management company, to introduce its spot BTC ETF. The new investment vehicle, dubbed as “ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI),” will be off-limits to small-scale individual investors, reserving its benefits only for Ultra High Net Worth Individuals (UHNWI) and institutional investors.
According to the Bangkok Post, the spot BTC ETF in Thailand has been assigned a risk rating of eight, categorizing it as a high-risk product due to the extreme price volatility of digital assets. To ensure the necessary liquidity and security for investors, One Asset Management will be required to invest in 11 global funds. The regulatory policies of the U.S. and Hong Kong have already been reviewed to accommodate the Thai spot BTC investment product.
Meanwhile, another investment firm in Thailand, MFC Asset Management, is awaiting approval from the SEC to launch its spot BTC ETFs, targeting institutions and affluent investors.
The approval of spot BTC ETFs by the Thai SEC aligns with the success of similar investment products in the United States. In March, the regulatory body revised its regulations, allowing asset management companies to venture into the crypto industry. On March 13, Thailand passed a bill for tax exemption on cryptocurrency gains to support its digital economy.
In related news, Australia is set to launch its first spot Bitcoin ETF on Tuesday.