Thailand has taken a significant step in the cryptocurrency market by approving its first spot Bitcoin (BTC) exchange-traded fund (ETF). The Thailand Securities and Exchange Commission (SEC) has greenlit the local asset management company One Asset Management (ONEAM) to launch this ETF, which will cater exclusively to ultra-high-net-worth individuals (UHNWIs) and institutional investors.
Exclusive Access to Ultra High Net-Worth Individuals
According to a report from the Bangkok Post, the SEC approved One Asset Management (ONEAM) to launch the “ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors” (ONE-BTCETFOF-UI). This ETF is specifically designed to cater to the financial elite, excluding retail investors from participating. The high-risk nature of Bitcoin, characterized by its price volatility, has led to this cautious approach, with the ETF being assigned a risk score of eight.
Ensuring Liquidity and Security
To ensure the necessary liquidity and security for this ETF, One Asset Management is required to invest in 11 global funds. This diversified investment strategy is intended to mitigate some of the inherent risks associated with Bitcoin investments. The U.S. and Hong Kong regulatory frameworks have already reviewed and influenced the Thai policy, ensuring a robust structure for the spot BTC investment product.
Market Expansion and Future Prospects
Another Thai investment firm, MFC Asset Management, is also in the pipeline, awaiting SEC approval to launch its own spot BTC ETFs. Like ONEAM’s product, MFC’s ETF will target institutions and wealthy investors, further expanding the market for high-net-worth individuals looking to diversify their portfolios with cryptocurrency assets.
Thailand’s Regulatory Landscape
The Thai SEC’s approval of spot BTC ETFs is part of a broader trend of successful cryptocurrency investment products in the U.S. Earlier this year, in March, the Thai regulator amended its rules, allowing asset management companies to delve into the crypto industry. This move was followed by the approval of a tax exemption bill on cryptocurrency gains on March 13, aimed at boosting the digital economy in Thailand.
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