Thailand sets Oct. 16 start for bitcoin and ether ETF rules

Thailand’s Securities and Exchange Commission has issued 11 rules for crypto exchange-traded funds, opening a regulated path for funds holding bitcoin or ether. The rules take effect Oct. 16, the SEC said in its announcement on Thailand’s crypto ETF framework. An ETF is a fund traded on a stock exchange. The effective date sets the framework’s start; the announcement does not say that a fund will begin trading that day.

Which crypto assets can the first funds hold?

The SEC says bitcoin and ether will be the only eligible crypto assets in the initial stage. Funds must be passive, meaning they aim to track the price of the asset they hold. They must keep average net exposure of at least 80% of their net asset value in a single crypto asset over each accounting year, according to the regulator.

The SEC said it chose eligible assets based on liquidity, broad market acceptance, network security and investor protection. The Block’s report on the new rules also says the funds must trade exclusively on the Stock Exchange of Thailand.

What safeguards will investors face?

Funds must use digital asset custodians licensed by Thailand’s SEC to safeguard their holdings. Before trading, investors must acknowledge that they understand the product’s risks. Securities firms cannot provide margin loans to buy the ETFs, and fund managers must disclose how each fund works, its service providers and its specific risks.

Asset management companies must show they have suitable staff, systems and service providers to run a fund. If they outsource digital asset investment management, they may use only a licensed digital asset fund manager. The SEC also says qualified digital asset firms may apply to supervise these funds if they meet requirements for financial standing, staff and operational systems.

Does the effective date mean ETFs will trade on Oct. 16?

The SEC’s announcement confirms when the rules take effect, but does not name any fund or confirm an ETF’s first trading date. It says asset managers seeking to establish a fund must meet the new requirements. The rules also allow Thai mutual funds and private funds to invest in locally listed crypto ETFs, subject to existing investment limits.

Sources and documents

• announcement on Thailand’s crypto ETF framework — sec.or.th
• report on the new rules — theblock.co