The Thai regulator, working with other government agencies, is developing regulations that will allow local investment funds to create ETFs linked not only to Bitcoin but also to other popular crypto assets. Such funds will be able to include multiple cryptocurrencies, giving investors the opportunity to diversify their portfolios and reduce risks by simultaneously generating income from multiple digital assets.
Secretary-General of the Thai SEC, Dr. Budsaratragoon, announced that the first cryptocurrency ETFs could appear as early as early next year. According to her, current opportunities for legal investment in cryptocurrencies in the country are extremely limited. Thai residents can purchase coins through online exchanges, but they face high financial risks due to market volatility, potential fraud, and inadequate regulation of trading platforms.
Some investors are turning to licensed fund managers who invest in foreign cryptocurrency ETFs. As a result, Thai investors' capital is flowing to other countries, Budsaratragun noted.
In March of this year, the SEC already allowed local management companies to create funds to invest in US spot Bitcoin ETFs. However, only large companies and high-net-worth individuals were allowed to participate in these funds, limiting access for ordinary investors.
This new regulation will expand the cryptocurrency market in Thailand by providing safer and more regulated investment instruments. Experts note that the launch of such funds could stimulate capital inflows and strengthen confidence in the crypto market among local investors.
Furthermore, the ability to include multiple cryptocurrencies in a single ETF opens up new strategies for portfolio diversification and risk mitigation. For many investors, this will be an attractive alternative to directly purchasing cryptocurrencies through online exchanges.
The implementation of these regulations is expected to strengthen Thailand's position in the international cryptocurrency arena and create a more transparent and secure environment for investors of all levels, stimulating the development of the financial sector and innovation in the field of digital assets.