Thai crypto ETFs must maintain an average net exposure of at least 80 percent of their net asset value per accounting year.
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Thai crypto ETFs must hold digital assets with custodians licensed by local regulators
Thailand has put 11 regulations in place in order for Bitcoin and Ether exchange-traded funds (ETFs) to be listed on its primary securities market, with these new regulations coming into force on October 16. These new regulations were announced by Thailand's Securities and Exchange Commission (SEC) on October 8, which said that all crypto-based ETFs launched in Thailand will only be traded on the Stock Exchange of Thailand (SET). Bitcoin and Ether will be allowed during the first phase, while the managers have to meet new investment, custody, and investor protection requirements.
The announcement states that with the regulations, Thai investors will be able to invest in the two cryptos using securities products without having to purchase or hold any digital asset. It is important to note that the regulation's October 16 start date does not necessarily mean that ETFs based on the cryptos will start being traded on that same day, as the fund managers must first satisfy the applicable requirements.
According to this framework, the crypto ETF is supposed to run as a passive mutual fund that tracks the cost of the underlying asset. According to the SEC rules, a crypto ETF has to have an average net exposure level of not less than 80 percent of its net asset value per accounting year.
During the initial stage, the regulator will allow investment in Bitcoin and Ether alone. Future investments will be dependent on variables like liquidity, market acceptance, and security of the blockchain platform. Firms that wish to launch such funds will have to prove that they have competent staff, an appropriate operational system, and proper arrangements with service providers. Their applications must comply with both the requirements set forth for standard ETFs and those for digital assets.
The SEC has mandated that crypto ETFs must hold funds with digital asset custodians that have been licensed and regulated in Thailand. The investment management of digital assets can be outsourced, but only to companies that have the requisite digital asset fund management licenses. Custodian companies and other authorised digital asset business entities can file for authorisation as mutual fund managers of cryptocurrency ETFs under Section 121 of the Thai Securities and Exchange Act. They should have enough capital, skilled manpower, and systems.
Upon the release of the announcement, digital asset firms in Thailand have backed the new offerings. Attakrit Chimphlapibul, co-founder of Bitkub Group, stated in an interview with Money and Banking on October 8 that the American spot Bitcoin and Ether ETFs have brought about new possibilities for investors to access cryptocurrency investments. In relation to the Thai system, Chimphlapibul added that the offerings would allow local financial firms, including asset management firms and custody firms, to take part in crypto ETF business operations.
In March 2025, Thailand started to evaluate cryptocurrencies deemed safe for trading and banking settlements. In a recent move, the SEC of Thailand added USDT and USDC to the list of tokens approved for trading on regulated exchanges. These stablecoins now joined Bitcoin, Ether, Ripple, and Stellar on Thailand's approved token list. This decision aligns with the country's broader efforts to establish a legally regulated crypto framework.
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