Capital markets News

Thailand permits institutions, UHNWI to invest in crypto ETF funds

thailand cryptocurrency

In January Thailand’s Securities and Exchange Commission (SEC) said it would monitor developments after the launch of 11 spot Bitcoin ETFs in the United States. Now it is granting permission to asset managers to launch private funds that can invest in these ETFs. However, the Bangkok Post reported that the SEC is not yet comfortable allowing asset managers to invest directly in cryptocurrencies.

“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,” said SEC secretary-general Pornanong Budsaratragoon.

The funds launched by the asset managers will only be eligible for investment by institutions and ultra high net worth individuals (UHNWI).

Given ETFs are securities, Thai securities firms are cleared to trade them. However, asset managers were not permitted to invest in digital asset ETFs until the SEC adapted the rules.

Meanwhile, yesterday the UK said it would not oppose the launch of listed crypto-backed exchange traded notes (cETNs), although retail investors are barred from investing. In Singapore, spot Bitcoin ETFs are also not authorized for marketing to retail investors.

Hong Kong already allowed ETFs based on crypto derivatives. In Late December last year, Hong Kong’s Securities and Futures Commission (SFC) released rules supporting the issuance of spot crypto ETFs.

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