Bitcoin

• 25 August 2026
• |
• 19:56

Thailand has moved closer to locally listed Bitcoin and Ether ETFs under draft rules that would keep fund management, trading and most custody activity within its domestic market.

Thailand’s Securities and Exchange Commission has published detailed rules that could eventually support locally established crypto exchange-traded funds. The proposal follows an earlier consultation held between April and May, when most respondents supported the general framework but raised questions about custody.

The SEC’s August 24 announcement opens a public consultation on how these products should operate, who may manage them and where the underlying digital assets can be held, while no asset manager, ticker, fee or launch date has been announced.

One fund would track one crypto asset

The official ETF consultation would initially permit passive funds tracking Bitcoin or Ether. Each ETF would follow a single cryptocurrency rather than hold a mixed portfolio.

A fund would need average net exposure of at least 80% of its net asset value to the selected asset over each accounting year. Future additions would depend on the SEC’s assessment of liquidity, market acceptance, network security and investor protection.

The 80% threshold is an annual average and the eventual prospectus for each fund will need to explain how exposure is calculated and how much flexibility the manager has when handling cash, fees or market disruption.

Only licensed asset management companies could establish the products. An applicant would have to demonstrate that it has suitable personnel, operational systems and agreements with the service providers needed to run the fund.

Every crypto ETF would trade exclusively on the Stock Exchange of Thailand. Investors could obtain Bitcoin or Ether exposure through an ordinary securities account without opening an account at a crypto exchange or managing a wallet.

The design favors Thai financial companies

The SEC is proposing a structure built around Thai-domiciled funds instead of relying on local versions of overseas products.

During the opening period, companies would not be permitted to issue depositary receipts referencing foreign crypto ETFs. The restriction would also cover certain arrangements through which securities firms help ordinary customers invest in foreign crypto funds. Institutional and ultra-high-net-worth investors are treated separately under the proposal.

Thai mutual and private funds, meanwhile, would be allowed to invest in locally established crypto ETFs. They could continue investing in eligible foreign products under their existing limits.

This approach gives domestic asset managers an opportunity to develop the market before foreign ETF wrappers become widely available to Thai retail investors. Management fees and exchange activity could remain in Thailand, while local firms gain experience operating regulated crypto funds.

The rules do not guarantee that investors will choose a Thai product over an established foreign ETF. Fees, liquidity, tracking accuracy and the reliability of the custody arrangement will determine whether the domestic products are competitive.

Custody will decide how workable the rules are

Fund assets would primarily be held by digital-asset custodians regulated in Thailand. Qualified crypto businesses could also apply to supervise these ETFs if they meet requirements covering financial strength, personnel and operating systems.

A fund supervisor could appoint a sub-custodian, but the company actually holding the digital assets would still need the appropriate custody licence. Asset managers that delegate digital-asset investment functions could use only a licensed digital-asset fund manager.

The SEC has left room for overseas custody when local arrangements are unavailable or unsuitable. Any foreign provider would need adequate regulatory supervision and safeguards for client assets.

A separate custody consultation identifies 11 jurisdictions being considered for this purpose: South Korea, Hong Kong, Japan, France, Malaysia, Germany, Luxembourg, Liechtenstein, Singapore, the United States and Ireland.

That list concerns acceptable regulatory jurisdictions and does not automatically authorize every custodian based in one of those markets. Providers would still need to meet the SEC’s qualification requirements individually.

The onshore preference gives Thai regulators a closer relationship with the firms protecting the assets. It may also make coordination easier if a wallet is compromised or withdrawals have to be suspended. Overseas providers could become necessary if domestic custodians lack sufficient capacity, insurance or experience to support large funds.

As our team previously examined in the custody trade-off behind Bitcoin ETFs, a fund removes private-key management from the individual investor. The responsibility then sits with the institutions operating and supervising the product.

Easier access brings a different set of risks

The proposed products would spare investors from seed phrases, wallet transfers and direct interaction with crypto exchanges. They would still carry the price risk of Bitcoin or Ether.

Investors would have to receive information about the structure and risks of crypto ETFs and confirm their understanding before trading. Operators would also be expected to warn against excessive concentration and consider whether an allocation is consistent with the investor’s financial position and tolerance for losses.

The product documents will need to explain how assets are separated, how private keys are controlled, which companies are responsible for custody and how the fund calculates its value. Investors will also need information about fees and the procedures used when crypto markets, custodians or pricing systems are disrupted.

Those protections cannot prevent losses caused by a falling market and their purpose is to make the operating structure and division of responsibility visible before an investor buys the product.

What still needs to happen

The public consultation closes on September 20. The SEC will then review the responses and may revise the proposal before adopting final regulations.

Asset managers could begin preparing individual products only after the regulatory framework is completed. Each proposed ETF would still need named service providers, approved custody arrangements, detailed offering documents and a Stock Exchange of Thailand listing.

The current proposal therefore establishes a possible route to market rather than a launch schedule.

Thailand has outlined who may manage, trade and safeguard these funds. Local custodians and market makers will still need to prove that they can support efficient trading and keep ETF prices close to the underlying Bitcoin or Ether market. The final rules can create the structure – the first products will show whether that structure works.

Author

Reporter at Coindoo

Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.

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