Spot Bitcoin ETFs: Thailand SEC adjusts rules to allow product launch

The Thailand Securities and Exchange Commission (SEC) recently reviewed its rules to give asset management firms in the private sector the greenlight to launch spot Bitcoin ETFs.

Leading Thailand-based daily newspaper Bangkok Post disclosed this in a report today, citing recent comments from Pornanong Budsaratragoon, the Secretary-General of the office of the Thailand SEC. 

Notably, Budsaratragoon revealed yesterday that the SEC agreed in its board meeting last week to give Thai private asset management firms the approval to launch spot Bitcoin ETFs. This move comes on the back of the success recorded by these products in the U.S. market.

Before now, the regulation around investment managers in the country made no provisions for crypto ETFs. Budsaratragoon highlighted the persistent calls from these Thai-based asset managers to allow them launch products in crypto.

The Thailand SEC Chief emphasized that the regulatory agency had to first evaluate the possibility of granting these firms exposure to digital assets, citing the inherent risks associated with them. These concerns often stem from the heightened volatility native to the crypto scene.

Following a careful consideration of the necessary factors, the agency has now adjusted its rules to accommodate spot Bitcoin ETFs, according to Budsaratragoon. Notably, South Korean authorities are also reviewing the approval of the products.

In Thailand, companies dealing in securities have the authority to facilitate trading in all assets regarded as securities by the country’s SEC. The recent rule change has classified spot Bitcoin ETFs as securities, giving these companies the greenlight to trade them.

However, should any Thai asset manager launch such a product, the rule forbids low-income retail investors from gaining exposure. The Thailand SEC has ruled that asset managers can only present these products to institutional investors and investors with a high net worth.

Spot Bitcoin ETFs record success in the US

The recent rule change comes amid the growing demand commanded by spot Bitcoin ETFs in the U.S., with the BlackRock iShares Bitcoin Trust (IBIT) seeing a record $788 million inflow on March 6. Interestingly, IBIT recently hit $10 billion in AUM, quicker than any ETF in the history of the U.S. This figure has since surged past $12 billion.

Market analysts have attributed the ongoing Bitcoin rally to a confluence of factors which include the demand triggered by the spot Bitcoin ETFs. Amid the upsurge, Bitcoin (BTC) clinched a new all-time high above $72,000 yesterday.