Thailand has granted approval for its first Bitcoin Exchange-Traded Fund (ETF), representing a notable milestone in the nation’s cryptocurrency industry.
The Thai Securities and Exchange Commission (SEC) has granted authorization to One Asset Management (ONEAM) to introduce a Bitcoin Exchange-Traded Fund (ETF), which is planned to be distributed from May 31 to June 6. By making this decision, Thailand is joining other countries in adopting regulated investment products related to Bitcoin, which demonstrates a worldwide shift towards institutional recognition of digital currencies.
The Thai Securities and Exchange Commission’s restrictions restrict the ETF to affluent and institutional investors, in accordance with a modification made to local norms in April.
ONEAM intends to allocate the cash to 11 prominent international Bitcoin funds, so providing sufficient liquidity and security. This method that includes a variety of investments helps to reduce risks and creates a steady environment for investing.
While ONEAM has obtained permission, MFC Asset Management is still seeking regulatory certification for its own Bitcoin Exchange-Traded Fund (ETF). Both ETFs will be restricted to private offers only for qualified investors, which demonstrates the SEC’s prudent approach to protecting investors while launching novel financial instruments.
Bitcoin ETFs provide a regulated avenue for investors to access Bitcoin’s price fluctuations without directly dealing with the cryptocurrency. Thai officials recognize the increasing demand from domestic institutions for Bitcoin investments and may facilitate wider acceptance in Thailand when public offers become accessible.
The Thai Securities and Exchange Commission’s ruling demonstrates a firm approval of Bitcoin and its potential function within the financial system, effectively balancing technological advancement with safeguarding the interests of investors and cultivating a secure atmosphere for cryptocurrency investments.
Five months ago, Thailand‘s Securities and Exchange Commission (SEC) has declined to approve the trading of spot Bitcoin ETFs, indicating a cautious approach to these investment products.
