Thailand Advances Draft Rules for Bitcoin and Ether ETFs

Thailand’s Securities and Exchange Commission (SEC) moved its framework for locally listed spot Bitcoin and Ether exchange‑traded funds (ETFs) from principle proposals to draft regulations. The regulator also revised its stance on the qualification of foreign digital‑asset custodians.

Consultation papers released

The SEC announced two consultation papers: one detailing draft rules for Thai crypto ETFs and another outlining principles for foreign custodians serving mutual and private funds that invest in digital assets. Public comments are accepted until 20 September.

Initial ETF structure

In the first phase, asset managers may launch passive ETFs that track either Bitcoin (BTC) or Ether (ETH) – the only two crypto assets eligible under the proposal. Each ETF must maintain an average net exposure of at least 80 % of its net asset value to the tracked asset throughout the accounting year.

Trading venue and investment scope

Proposed ETFs would be listed exclusively on the Stock Exchange of Thailand (SET). Mutual funds and private funds could invest in these Thai‑domiciled crypto ETFs, as well as in foreign crypto ETFs already permitted under existing limits. Products linked to foreign crypto ETFs, such as depositary receipts, would not be allowed in the initial stage.

Revised custody framework

The SEC retained on‑shore digital‑asset custodians as the primary providers for crypto ETFs, while allowing qualified foreign custodians on a case‑by‑case basis. Foreign custodians serving mutual and private funds must be supervised by a regulator with legal authority and meet the SEC’s standards for investor protection.

Strategic context

The regulatory updates are part of Thailand’s broader ambition to position itself as a global hub for institutional digital‑asset activity.