Thailand paves the way for spot cryptocurrency ETFs
The Securities and Exchange Commission of Thailand (SEC) has finalized rules to allow spot exchange-traded funds backed by Bitcoin (BTC) and Ethereum (ETH) to be listed on the Stock Exchange of Thailand (SET). The country's financial regulator has issued new regulations allowing local asset management companies to list passive spot ETFs on the Stock Exchange of Thailand starting October 16.
This frame has attracted much attention due to its structural design. Funds must be traded on the Stock Exchange of Thailand, invest at least 80% of their net assets in a single eligible cryptocurrency, and use a custodian regulated by Thai authorities. Thailand's Securities and Futures Commission has approved 11 notices requiring each ETF to track a single crypto asset and at least 80% of its value is held in that asset.
Currently, no specific Bitcoin or Ethereum ETF products have been approved under the new framework. This means October 16 is the date when the regulatory framework takes effect, rather than the date when specific products will be launched.
Institutional Access and Retail Investor Protection Mechanism
This approval opens up compliance channels for wealth managers and institutional investors. Thailand's Securities and Futures Commission has also revised its rules for local market participants to allow domestic mutual funds and private equity funds to invest in Thailand-based cryptocurrency ETFs. Previously, such investments were limited to offshore cryptocurrency ETF products.
However, retail investors currently face stricter restrictions. Investors must confirm that they are aware of the risks before making a purchase; brokers are not allowed to provide loans for customers to purchase cryptocurrencies; in addition, retail investors will initially be prohibited from accessing products that provide indirect access to overseas cryptocurrency ETFs.
Thai brokers are not allowed to assist retail investors in entering the overseas cryptocurrency ETF market. Only institutional and ultra-high-net-worth clients are allowed to directly invest in international digital asset funds. The framework allows investors to gain regulated exposure to crypto assets without directly purchasing or storing digital assets.
The move triggered comparisons with the U.S. market. The United States launched spot Bitcoin and Ethereum ETFs in 2024, opening up new channels for institutional investors. Regulators said feedback received during consultations earlier this year generally supported the proposed framework.

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