Thai Regulator Opens US Spot Bitcoin ETFs to Institutional Investors

Fazzaco learned that the Securities and Exchange Commission (SEC) of Thailand has made amendments to its regulations, enabling asset management companies in the country to introduce private funds that invest in spot Bitcoin exchange-traded funds (ETFs) traded on US exchanges. These offerings are restricted to institutional investors and ultra-high-net-worth individuals.

As per the Thai SEC, local asset management companies can only provide trading services for assets classified as securities, and previous regulations governing investments of asset management firms did not cover digital asset ETFs.

However, following the approval of spot Bitcoin ETFs by the US securities regulator in January, shares in these ETFs were reclassified as securities under Thai regulations rather than crypto assets.

Pornanong Budsaratragoon, Secretary General of the Thailand SEC, noted that only accredited investors would be permitted to have exposure to Bitcoin ETPs due to their high-risk nature.

In an interview with local media, she stated: "Asset management firms asked the SEC for them to have exposure in digital assets, especially Bitcoin and spot Bitcoin ETFs, but we need to consider carefully whether to allow asset management firms to invest in digital assets directly due to the high risk."

It is worth noting that the Thai regulatory authority still prohibits asset management companies from launching Bitcoin ETFs within the country, and retail investors do not possess the right to invest in such trading instruments.