Thailand’s securities regulator has approved asset management firms to launch private funds specifically designed to invest in Spot Bitcoin ETFs. However, access to these funds will be limited to institutional investors and individuals with ultra-high net worth.
This decision essentially allows a selected group of sophisticated investors in Thailand to indirectly invest in Bitcoin through regulated channels.
According to the Bangkok Post, SEC secretary-general Pornanong Budsaratragoon announced that asset management firms are now authorized to manage private funds that invest in US-based Spot Bitcoin ETFs. The decision was reportedly agreed upon by the SEC board last week.
Thai Regulator Gives Investment Nod as Spot Bitcoin ETFs Cleared as Securities
In accordance with SEC regulations, securities companies are authorized to facilitate trading for assets classified as securities. Following the approval of Spot Bitcoin ETF trading in the US, these ETFs are now categorized as securities.
As a result, Thai securities firms are now allowed to invest in these ETFs, aligning with the regulatory framework governing securities trading.
“Asset management firms requested permission from the SEC to gain exposure to digital assets, particularly Bitcoin and spot Bitcoin ETFs. However, we must carefully consider whether to allow asset management firms to directly invest in digital assets due to the high level of risk,” stated Pornanong.
The current rules governing asset management firms’ investments do not cover digital asset ETFs. Therefore, the SEC deemed it necessary to modify these rules to accommodate such investments.
The SEC’s approval comes amidst Bitcoin’s surge to a new all-time high, surpassing $72,000. This surge is attributed to various factors, including increased investment in US Spot Bitcoin ETFs.
Thailand SEC Earlier Maintained Caution
In January, Thailand’s SEC announced its decision not to permit the trading of spot Bitcoin ETFs within the country. The regulator expressed concerns that foreign-approved Bitcoin ETFs might not align with Thailand’s economic needs.
“We are closely monitoring these developments, but at present, there are no plans to allow the introduction of spot Bitcoin ETFs in Thailand,” a representative informed the Bangkok Post.
However, the SEC has recently shown a more crypto-friendly stance by easing investment limits for retail investors in certain asset-backed tokens. Furthermore, it now requires custodial wallet management to be conducted by dedicated entities, indicating a more open approach to cryptocurrency regulation.
