Thailand Greenlights BTC and ETH ETFs on SET, Restricts Access to Overseas Crypto ETFs

Thailand will allow Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds to list and trade on the Stock Exchange of Thailand (SET) starting October 16, under new rules finalized by the Securities and Exchange Commission (SEC). The SEC issued 11 regulatory notifications on October 8 following two rounds of public consultations. The framework also tightens controls on foreign crypto ETF exposure for retail investors. Brokers are barred from directing ordinary clients into overseas crypto ETFs, and may facilitate purchases only for institutional and ultrahigh-net-worth investors. Thai mutual funds previously could access crypto ETF exposure only via products listed abroad. Under the new regime, mutual funds and private funds can invest in locally listed crypto ETFs, within existing investment limits. The regulator is also keeping foreign crypto ETF-linked instruments out of the domestic market for now, including depositary receipts (DRs)—locally traded certificates that track securities listed overseas—and similar structures. At launch, only BTC and ETH qualify. The SEC said any expansion to other assets will be assessed based on factors including liquidity, market adoption, network security, and investor protection. The approved ETFs must be passive. Each fund is required to maintain an average net exposure of at least 80% of net asset value to a single crypto asset over each accounting year. Custody must be handled by SEC-regulated digital asset custodians, though the regulator indicated it may later recognize qualified foreign custodians where appropriate. Investor protections include mandatory risk education and an acknowledgment confirming product understanding before trading. Leverage is prohibited: brokers cannot provide margin loans for purchasing these ETFs, aligning with an existing ban on lending for crypto purchases through digital asset operators. The measures underscore Thailand's broader push for tighter oversight—alongside initiatives such as a proposed audit of USDT transactions—and signal that the country's crypto ETF market is expected to be built first by local asset managers and custodians.