Thailand’s Securities and Exchange Commission, the SEC has given the green light for a spot Bitcoin exchange-traded fund, but allow the trading only for the institutional investors.
First Bitcoin ETF inThailand
The SEC of Thailand has authorized One Asset Management, or ONEAM to launch the country’s first spot Bitcoin ETF, targeting wealthy and institutional investors.
This marks a significant shift in Thailand’s approach to cryptocurrencies, considering past controversies over rumors about potential bans and the absence of legal protections for crypto users and investors due to undefined local laws regarding crypto assets as financial products.
Only for the chosen
The newly approved fund plans to invest in 11 leading global funds, ensuring the custody of cryptocurrencies meets international standards for liquidity and safety.
This move has been vetted by regulatory bodies in the US and Hong Kong, and worth to mention the MFC Asset Management is still awaiting SEC approval for its own Bitcoin ETF, also aimed at wealthy and institutional investors.
Of course, some Thai users criticize the decision for potentially discriminating against retail investors, it represents a step forward compared to previous regulatory stances.
“Digital assets are an alternative asset with low correlation with other financial assets. They are suitable to help investors diversify their investment risks,” said Pote Harinasuta, CEO of ONEAM.
This statement is a clear sign the growing recognition of Bitcoin ETFs as a viable investment option, helping to diversify portfolios and mitigate risks.
ETFs on fire
Internationally, Bitcoin ETFs have been gaining traction, particularly following the US SEC’s approval of funds issuing spot Bitcoin ETFs earlier this year.
While other countries like Canada introduced spot Bitcoin ETFs before the US, they didn’t attract significant interest due to the smaller size of their financial markets, and the US market’s vast financial influence is a number one key reason why experts and analysts view the approval of US Bitcoin ETFs as a game-changer.
In April, the Hong Kong Securities and Futures Commission also allowed the establishment of ETFs that invest in both Bitcoin and Ethereum, and we can assume this trend indicates a growing acceptance of cryptocurrency investment products globally, suggesting that more and more countries may follow suit.
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