Thailand Proposes Domestic‑Focused Bitcoin and Ethereum ETF Framework

Thailand's Securities and Exchange Commission (SEC) has released a draft framework for crypto exchange‑traded funds (ETFs) that would initially cover single‑asset Bitcoin and Ethereum products. The proposal, opened for comment on August 24, seeks to give domestic fund managers, the Stock Exchange of Thailand (SET), and Thai‑regulated custodians a structural advantage as the market opens.

Key Requirements

• Each ETF must maintain an average net exposure of at least 80% of its net asset value to the chosen cryptocurrency over an accounting year.
• Funds would trade exclusively on the SET.
• Assets must be held primarily by digital‑asset custodians licensed by the Thai SEC.

Domestic Focus, Not a Ban on Foreign Products

While the draft does not prohibit Thai investors from accessing overseas crypto ETFs, existing rules already allow mutual and private funds to invest abroad. The SEC is also consulting on a separate framework that could eventually permit qualified foreign custodians.

Impact on Local Industry

Licensed Thai custodians such as Rakkar Digital and Orbix Custodian, along with fund managers like Soberin, Orbix Invest and Merkle, are positioned to participate. Thailand also has 24 licensed mutual‑fund management companies that could apply for ETF roles.

Investor Safeguards

Prospective investors would need to acknowledge product‑risk education, and intermediaries would be required to assess diversification, risk tolerance and financial capacity before trading.

Timeline

Public comments close on September 20. The SEC expects the related rules to take effect in 2026, though no specific launch date for the ETFs has been announced.