Thailand has joined the trend of Bitcoin Exchange-Traded Funds (ETFs) by approving One Asset Management (ONEAM) to launch a Bitcoin ETF, but its use is limited to affluent and institutional investors.

Bitcoin ETF in Thailand

Approved by the Securities and Exchange Commission (SEC) of Thailand, the ETF is named ONE Bitcoin ETF Fund and is scheduled to be issued between May 31st and June 6th, with the investment risk level of the Bitcoin ETF rated at level eight.

This approval comes about two months after the Thailand SEC amended its local rules to allow local asset management companies to launch private funds offering Bitcoin ETFs. However, these products are strictly limited to affluent and institutional investors.

While ONEAM has received approval, MFC Asset Management is still awaiting regulatory approval for its Bitcoin ETF.

Maintaining global standards

The first Thailand Bitcoin ETF has formulated a policy to invest in 11 global funds to ensure liquidity and security. It also emphasizes cryptocurrency storage that complies with international standards. Interestingly, before approval, Thai funds were reviewed by regulatory bodies in the United States and Hong Kong.

"Digital assets are alternative assets with low correlation to other financial assets. They are suitable for helping investors diversify investment risks," said Pote Harinasuta, CEO of ONEAM. "Despite Bitcoin's supply being limited to 21 million coins, demand is rising with its increasing popularity, and Bitcoin has high growth potential."

"Investing in Bitcoin can yield good returns, but it comes with high volatility," added Harinasuta, suggesting investors allocate 5% of their portfolios to Bitcoin to achieve an annual return of about 8.9%. Portfolios without Bitcoin have an annual return rate of 5.8%.

With Thailand joining, several jurisdictions now offer Bitcoin ETFs. However, these tools gained mainstream approval earlier this year in the United States. Currently, eleven Bitcoin ETFs are listed on the US stock exchange, with Ethereum ETFs expected to be listed in the coming weeks or months.