Thailand’s Securities and Exchange Commission (SEC) announced a consultation on rules for cryptocurrency exchange‑traded funds (ETFs) that would initially target Bitcoin and Ethereum. The proposal, released on August 24, calls for passive, single‑asset funds that must keep at least 80% of net asset value invested in the chosen cryptocurrency over an accounting year.
Domestic focus of the framework
Under the draft rules, the ETFs would be listed exclusively on the Stock Exchange of Thailand and their assets would be held primarily by digital‑asset custodians licensed by the Thai SEC. The approach aims to give Thai fund managers, the exchange and regulated custodians a structural advantage as the market opens to crypto products.
Relation to foreign products
The proposal does not ban foreign crypto ETFs. Existing mutual and private funds may continue to invest in overseas crypto ETFs, and the SEC is also consulting on a separate framework that could eventually permit qualified foreign custodians. However, the draft would initially limit certain alternative products linked to foreign crypto ETFs, such as depositary receipts and specific securities‑company arrangements for non‑institutional investors.
Industry participants
Current SEC registries list Rakkar Digital and Orbix Custodian as licensed custodial wallet providers, while Soberin, Orbix Invest and Merkle are registered digital‑asset fund managers. Thailand also has 24 licensed mutual‑fund management companies that could compete for roles under the new framework.
Consultation timeline
Public comments are accepted until September 20. The SEC expects the related rules to take effect later in 2026, though no launch date for the ETFs has been set.
Investor safeguards
Prospective investors would be required to complete product‑risk education and acknowledgment statements. Intermediaries would need to assess diversification, risk tolerance and financial capacity before allowing trades.
