Thailand’s Securities and Exchange Commission (SEC) recently gave the green light for the launch of the country’s first spot Bitcoin exchange-traded fund (ETF), as announced by One Asset Management (ONEAM). This development positions ONEAM as a leader in providing the “ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors” (ONE-BTCETFOF-UI), catering specifically to affluent and institutional investors.
The inaugural fund, set for distribution from May 31 to June 6, carries an investment risk level of eight and will diversify investments across 11 top global funds. These funds adhere to strict international storage standards and have undergone thorough reviews by regulatory bodies in the U.S. and Hong Kong.
While ONEAM moves forward with its Bitcoin ETF, MFC Asset Management is also awaiting approval from the Thai SEC for its own Bitcoin ETF designed for high-net-worth individuals. ONEAM’s CEO, Pote Harinasuta, highlighted the strategic significance of digital assets in portfolio diversification due to their low correlation with traditional financial assets.
Harinasuta emphasized Bitcoin’s growing acceptance and potential, citing its impressive track record of averaging a 124% annual return over the past 11 years, despite high volatility. He recommended a 5% portfolio allocation to Bitcoin, which could potentially yield an 8.90% annual return.
Moreover, Harinasuta emphasized the enhanced security features of investing in Bitcoin through ETFs compared to direct purchases on various platforms, which have historically faced challenges like data loss and theft. ETFs offer investors the security of custodial storage similar to institutional investor standards.
In terms of Thailand’s stance on crypto, operators in the cryptocurrency sector face stringent licensing and compliance requirements under existing regulations. Digital asset business operators must meet strict criteria, including exchanges, brokers, dealers, and ICOs. ICO issuers must obtain SEC approval and register through a “Digital Portal Service Provider” to enhance investor confidence.
Taxation policies have also been clarified, with profits from cryptocurrencies identified as taxable income. Exchanges enjoy VAT exemption for digital token transfers, with policies extended until 2023 for digital currency issued by the Bank of Thailand. Anti-money laundering regulations treat digital asset business operators as financial institutions, subjecting them to reporting and due diligence requirements.
Recent efforts by Thailand’s SEC have targeted unregistered cryptocurrency service providers to protect investors and maintain financial stability. The SEC advises users to withdraw funds from unauthorized platforms to avoid potential losses and encourages them to verify providers through licensed operators or the “SEC Check First” application.
Globally, there is a trend towards stricter oversight of digital asset markets. In Europe, the Markets in Crypto-Assets Regulation is exploring decentralized finance applicability, with directives from the European Commission expected. South Korea is also ramping up regulations for virtual asset service providers, focusing on executive roles and responsibilities, with the FSC gaining authority to suspend VASP licenses during investigations.
