Thailand advances spot Bitcoin and Ether ETF rules with 80% exposure floor

Thailand’s Securities and Exchange Commission (SEC) has released draft regulations for locally listed spot Bitcoin and Ether exchange‑traded funds (ETFs). The proposals set an 80% minimum exposure floor to the underlying cryptocurrency and retain domestic digital‑asset custodians as the default custody solution.

Key regulatory details

• The draft rules apply to ETFs that will trade exclusively on the Stock Exchange of Thailand, giving investors crypto exposure through standard securities accounts.• Each fund must maintain an average net exposure of at least 80% of its net asset value to its underlying asset over each accounting year.• Only Bitcoin and Ether are eligible in the initial phase, as the regulator deems them sufficiently liquid and widely accepted.• Asset‑management companies will establish and manage the funds, while investment activity may be delegated to a licensed digital‑asset fund manager.

Custody framework

Domestic digital‑asset custodians remain the primary custody option. The SEC may permit qualified foreign custodians on a case‑by‑case basis, provided their home regulator meets Thai standards for investor protection and oversight.

Public consultation

The SEC opened two consultation papers on August 21, covering the ETF draft rules and revised qualification standards for foreign custodians. Comments are accepted until September 20.

Context and next steps

The draft builds on an April consultation that gathered broad support for crypto ETFs. Earlier in the year, Thailand approved a spot Bitcoin fund of funds for institutional and ultra‑high‑net‑worth investors, but retail access was not permitted. The new framework aims to broaden retail participation while ensuring operational readiness, including qualified personnel, robust systems, and appropriate service providers.

After the consultation period, the SEC will review feedback before finalising the regulations and moving toward implementation.