Thailand’s Securities and Exchange Commission (SEC) has announced plans to significantly expand the country’s cryptocurrency exchange-traded fund (ETF) market. This initiative marks a shift away from solely Bitcoin-centric investments, with forthcoming regulations aimed at creating funds that encompass a wider range of digital tokens. The SEC expects to finalize and implement the new rules in early 2025, paving the way for altcoin-based ETFs.
As Thailand’s stock market experiences a year-to-date decline of 7.6%, regulators are increasingly attentive to the needs of younger investors drawn to decentralized assets. In response, the government is looking to diversify financial products and reinforce Thailand’s status as a regional crypto hub. Currently, investors in Thailand can either purchase cryptocurrencies directly or invest in managed funds that provide access to foreign Bitcoin ETFs. The SEC’s latest initiative intends to establish domestic frameworks, which will allow mutual funds and institutional investors to offer ETFs tracking a variety of digital assets—not just Bitcoin.
Pornanong Budsaratragoon, the SEC’s secretary-general, emphasized the agency’s commitment to broadening the supply and criteria for crypto assets within ETFs. The upcoming regulations will facilitate investment products that track a basket of different cryptocurrencies, aligning Thailand with global trends as markets in the U.S. and Hong Kong introduce similar multi-token funds.
In mid-2024, Thailand approved its first spot Bitcoin ETF, managed by One Asset Management and designed as a “fund of funds” for institutional investors. Influenced by recent market developments in the U.S. and Hong Kong, Thai regulators are now seeking to broaden investment options to include altcoins like Ethereum and Solana, among others. This move aims to cater to a growing cohort of digital-centric investors who view such expansions as essential for mainstreaming tokenized investments and achieving portfolio diversification.
As of late 2024, Thailand boasts over 270,000 active crypto trading accounts, reflecting strong domestic demand. Authorities see the ETF expansion as a means to offer safer, regulated investment pathways while reducing reliance on unregulated foreign platforms. This rollout occurs amid a backdrop of ongoing SEC enforcement against unauthorized exchanges, as regulators work to enhance oversight in response to rising crypto interest.
To create the new ETF framework, Thailand’s SEC is collaborating with various agencies, seeking to position the nation as a leading digital asset regulator in Southeast Asia. In addition to the expansion of ETF rules, the ongoing reforms aim to strengthen compliance regimes and explore new tokenized products. Officials have articulated their goal as one of facilitating investor demand for diversified crypto exposure while ensuring the integrity of the market.
