Thailand’s securities regulator has given the green light for asset management firms to introduce private funds tailored for investment in Spot Bitcoin ETFs. However, access to these funds will be limited to institutional investors and individuals with ultra-high net worth.
The decision effectively allows a select group of sophisticated investors in Thailand to indirectly invest in Bitcoin through regulated channels.
SEC Secretary-General Pornanong Budsaratragoon announced that asset management firms are now authorized to manage private funds investing in US-based Spot Bitcoin ETFs, as reported by the Bangkok Post on Tuesday. The decision was reportedly approved by the SEC board last week.
Thai Regulator Approves Investment Access as Spot Bitcoin ETFs Classified as Securities
Under SEC regulations, securities companies are permitted to facilitate trading for assets classified as securities. With Spot Bitcoin ETFs now categorized as securities following approval in the US, Thai securities firms can invest in them, aligning with the regulatory framework governing securities trading.
“Asset management firms requested permission from the SEC to gain exposure to digital assets, especially Bitcoin and spot Bitcoin ETFs. However, we need to carefully consider whether to allow asset management firms to invest directly in digital assets due to the high risk involved,” Pornanong stated.
Existing rules governing asset management firms’ investments do not cover digital asset ETFs. Therefore, the SEC deemed it necessary to amend these rules to facilitate such investments, according to the official.
The SEC’s approval comes amid Bitcoin’s surge to a new all-time high exceeding $72,000, driven by increased investment flowing into US Spot Bitcoin ETFs.
Thailand SEC Previously Exercised Caution
Earlier in January, Thailand’s SEC stated its reluctance to allow trading of spot Bitcoin ETFs in the country. The regulator was not convinced that foreign-approved Bitcoin ETFs were suitable for the local market, citing economic mismatches.
“We are monitoring these developments, but currently, there is no plan to permit the establishment of spot Bitcoin ETFs in Thailand,” a representative told the Bangkok Post.
Recently, the SEC has demonstrated a more crypto-friendly stance by relaxing investment limits for retail investors in specific asset-backed tokens. Additionally, it now requires custodial wallet management by dedicated entities, signaling a more open approach to cryptocurrency regulation.