Thailand’s SEC Approves Launch of the First Spot Bitcoin ETF by One Asset Management

On June 4, 2024, Thailand's Securities and Exchange Commission (SEC) marked a significant milestone in the country's financial landscape by officially approving the launch of the first spot Bitcoin Exchange Traded Fund (ETF). This landmark approval was granted to One Asset Management (ONEAM), positioning it as a pioneer in the Thai market for cryptocurrency-based financial products.

The newly approved ONE Bitcoin ETF (ONE-BTCETFOF-UI) is tailored specifically for institutional investors, adhering to an investment policy that involves participation in 11 leading global funds to ensure liquidity, security, and compliance with international asset management standards.

According to reports, the ONE Bitcoin ETF has already undergone rigorous scrutiny and has been successfully vetted by regulatory bodies in the United States and Hong Kong, underscoring its robustness and adherence to global financial regulations.

Pote Harinasuta, the CEO of ONEAM, highlighted the unique attributes of cryptocurrencies as alternative assets. He noted their low correlation with other financial assets, which can aid investors in diversifying their investment risks. “Investments in Bitcoin can be highly profitable, albeit associated with high volatility,” Harinasuta stated, advising traders to allocate no more than 5% of their total deposits to such investments. Over the long term, such an investment strategy could potentially yield an annual return of 8.9%.

Harinasuta also emphasized the security features of the Bitcoin ETF. Investing directly in cryptocurrencies through various platforms can pose significant risks, including data loss or fund theft. The ETF structure offers a more secure avenue for investment by mitigating these risks through regulated and standardized custodial practices.

Meanwhile, another firm, MFC Asset Management, is still awaiting a decision from the SEC regarding its own application for a spot Bitcoin ETF. This follows a March 2024 policy change by Thailand's SEC, which permitted companies to invest in spot Bitcoin ETFs, though it limited trading to institutional investors and individuals with high income levels.

Additionally, the Thai regulator has issued warnings against unlicensed crypto exchanges operating within the country, threatening to block access to those failing to comply with licensing requirements.

This approval by Thailand's SEC not only broadens the scope of financial products available in the country but also signals a growing acceptance of cryptocurrencies as legitimate and valuable financial assets within the traditional financial system.