Thailand Signals Green Light for Domestic Bitcoin and Ether ETF Products

Thailand’s Securities and Exchange Commission (SEC) has approved a new regulatory framework that will allow local asset managers to launch Bitcoin and Ether exchange-traded funds (ETFs), with the rules taking effect on October 16.

The changes will enable Thai investors to gain cryptocurrency exposure through funds listed on the Stock Exchange of Thailand, providing a domestic alternative to direct crypto purchases and overseas investment products.

Under the new framework, each ETF must track a single cryptocurrency and maintain at least 80% of its net asset value in exposure to that asset. Bitcoin and Ether will be the only cryptocurrencies eligible when the market opens, the SEC said in its Thursday announcement.

Investors must acknowledge the risks before buying these funds. Brokers are prohibited from providing loans to finance cryptocurrency purchases, and all digital assets held by the ETFs must be secured by custodians regulated by Thailand’s SEC.

Previously, access to foreign crypto ETFs in Thailand was limited to institutional and wealthy investors. The new rules expand the range of investment options available domestically, following the regulator’s stated intention in 2025 to broaden the market beyond Bitcoin.

The framework also permits asset managers to outsource cryptocurrency investment management to licensed digital-asset fund managers. Eligible custodians and other qualified companies can register as supervisors overseeing crypto ETF operations.

Separately, the SEC has updated regulations to allow mutual funds and private funds to invest in locally listed crypto ETFs, subject to existing investment limits. However, the initial phase will not permit products such as depositary receipts that provide retail investors with indirect access to foreign crypto ETFs.

The move brings Bitcoin and Ether into Thailand’s established investment infrastructure while retaining safeguards covering asset custody, risk disclosure and investor suitability.

Thailand also has a significant cryptocurrency user base. Data attributed to World puts crypto ownership at approximately 20% of the country’s population, compared with 13% in the United States. Nigeria, the Philippines and South Africa each reportedly have ownership rates of about 19.4%.