The Thailand Securities and Exchange Commission (SEC) has approved the nation’s first Bitcoin Exchange-Traded Fund (ETF), marking a significant milestone for the cryptocurrency market. This momentous event represents a major advancement in Thailand’s widespread embrace of digital assets and offers investors a convenient way of becoming familiar with Bitcoin. The approval of this ETF is anticipated to have significant effects on the local and international cryptocurrency markets, indicating an increase in institutional trust and regulatory backing for cryptocurrencies like Bitcoin.
Leading the Way with a Bitcoin ETF is ONEAM
As the first company to introduce a spot Bitcoin ETF in Thailand, ONEAM has received support from the Securities and Exchange Commission (SEC) and aims to attract wealthy and institutional investors. With an investment risk level of eight, the ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI) will be accessible from May 31 to June 6. To guarantee liquidity and security, this fund comprises investments in eleven top worldwide funds, with coin storage that complies with international standards and is examined by U.S. and Hong Kong regulatory bodies.
MFC Asset Management is likewise approving an SEC-approved Bitcoin ETF that targets comparable investors. “Digital assets are alternative assets that have low correlation with other financial assets,” says Pote Harinasuta, chief executive of ONEAM. They are useful for assisting investors in spreading out their risk exposure. Since the US SEC and Hong Kong’s Securities and Futures Commission have approved the creation of ETFs investing in Bitcoin and Ethereum, Bitcoin ETFs are becoming more well-known internationally.
Changes to Regulation and Investment Perspectives
After the U.S. SEC-approved Bitcoin ETF trading on January 11, Thailand’s SEC had earlier announced modifications permitting asset management firms to start private funds investing in U.S. spot Bitcoin ETFs. This choice aligns with the worldwide trend of investors becoming more confident in Bitcoin ETFs. The significant risk associated with these investments is highlighted by SEC secretary-general Pornanong Budsaratragoon, even though institutional investor demand for them is rising.
Pote Harinasuta emphasized the potential for large profits on Bitcoin, pointing out that over the last 11 years, it had an average yearly return of 124%, compared to 83% volatility. To achieve an annual return of 8.90%, he recommended investors keep their exposure to Bitcoin to 5% of their portfolio. He emphasized the safety of investing through exchange-traded funds (ETFs), as custodians keep unitholders’ data and coins offline, providing defence against hazards like data loss or theft that have beset direct investments on different platforms.
