Thailand proposes Bitcoin ETF framework to keep wealth domestically

Thailand is proposing a framework for crypto exchange-traded funds (ETFs) that would benefit domestic fund managers and regulated custodians as it opens the market to Bitcoin and Ethereum products. On Aug. 24, Thailand's Securities and Exchange Commission (SEC) began public comment on rules allowing passive, single-asset funds focused on Bitcoin or Ethereum, requiring each fund to maintain an average net exposure of at least 80% of net asset value to its chosen asset over an accounting year. The proposed products aim to replicate the success of crypto ETFs in the United States, which have attracted over 60000 million dollars in net inflows since launch. Bitcoin ETFs account for about 54000 million dollars, while Ethereum products hold roughly 12000 million dollars. Locally established crypto ETFs would trade exclusively on the Stock Exchange of Thailand, with assets held primarily by digital-asset custodians regulated by the Thai SEC. The proposal does not ban foreign crypto products, allowing mutual and private funds to invest in overseas crypto ETFs. However, it would restrict some alternative products tied to foreign crypto ETFs. The SEC's current registry includes licensed custodial wallet providers and digital-asset fund managers, positioning them to compete for roles if the framework is finalized. Investors would need to meet product-risk education requirements before trading, and intermediaries would assess diversification and risk tolerance. Comments close on Sept. 20, with related rules expected to take effect later in 2026.

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