Thailand SEC Greenlights Domestically Listed Bitcoin and Ethereum ETFs, Rules Take Effect Oct. 16

Thailand's Securities and Exchange Commission (SEC) has issued new regulations that allow Thai asset managers to launch exchange-traded funds (ETFs) tracking Bitcoin and Ethereum, paving the way for the country's first domestically listed crypto ETFs. The SEC said the notifications will take effect on October 16. Under the framework, eligible products must be passive, single-asset ETFs and maintain at least 80% of net asset value in the referenced cryptocurrency throughout each accounting year. In the initial phase, only Bitcoin and Ethereum qualify, and the ETFs will be permitted to trade solely on the Stock Exchange of Thailand. Custody and management requirements are also tightened. Crypto ETF custodians must be digital-asset custodians regulated by Thailand's SEC. Fund sponsors must demonstrate sufficient operational readiness, and any outsourced digital-asset investment management can be assigned only to licensed digital-asset fund managers. Investor protection measures mirror restrictions already applied to direct crypto trading. Brokers are prohibited from lending clients money to purchase the ETFs. Investors must acknowledge that they understand the products' risks before trading, and securities firms are required to stress appropriate asset allocation. Digital-asset custodians and other qualified operators may also register as mutual fund supervisors for crypto ETFs. For Thai investors, the change creates a domestic alternative to offshore products or trading on exchanges. Previously, Thailand allowed only institutional and high-net-worth investors to buy foreign crypto ETFs. The SEC also revised its rules to allow mutual funds and private funds to invest in Thai crypto ETFs, an option that had been limited to foreign funds. The SEC said that, at the outset, it will not permit depositary receipts linked to foreign crypto ETFs, nor will brokers be allowed to facilitate foreign-ETF purchases for non-institutional clients. The rules follow public hearings held between April and September, which the regulator said received majority support. The move places Thailand among a growing number of markets broadening access to crypto ETFs. No fund has filed to launch yet, and there is still no confirmed debut date for the first Thai Bitcoin or Ethereum ETF.