Thailand SEC Greenlits Country’s First Bitcoin Spot ETF

Securities and Exchange Commission (SEC) of Thailand has approved One Asset Management (ONEAM) to launch the first spot Bitcoin exchange-traded fund (ETF) of the country. 

As per reports, the new fund would be distributed between 31 May 2024 and 6 June 2024 under the name ONE Bitcoin ETF Fund of Funds Unhedged and (ONE-BTCETFOF-UI), according to a recent report from Bangkok Post. However, the investment will only be available to wealthy and institutional investors and not for Retail Investors, due to volatility.

As per reports, ONEAM recommended investors allocate 5% of their portfolio to Bitcoin, expecting an annual return of 8.90%. Although it may increase overall portfolio volatility, the allocation is expected to improve expected returns and Sharpe ratio, a measure of risk-adjusted returns.

"Digital assets are an alternative asset that has a low correlation with other financial assets. They are suitable to help investors diversify investment risks," said Pote Harinasuta, CEO of ONEAM. “Although the supply of Bitcoin is limited to 21 million, demand is rising as it gains popularity. We see high growth potential for Bitcoin.”

Worth noting, as an added measure of liquidity and safety, ONEAM, the first Thai Bitcoin ETF invests in 11 global funds. Additionally, the fund reportedly adheres to international standards for storing coins and has been reviewed by US and Hong Kong regulatory agencies. 

Bitcoin ETFs Gaining Momentum Worldwide

Since the US SEC approved the creation of funds that directly invest in spot Bitcoin through ETFs last January, Bitcoin ETFs are gaining international recognition. The latest trading day saw spot Bitcoin ETFs attract $105 million in net inflows, marking 15 consecutive days of net inflows. 

Further, Hong Kong's Securities and Futures Commission approved the establishment of Bitcoin and Ethereum ETFs in April.