Thailand sets October 16 start for Bitcoin and Ether ETF framework

Thailand's Securities and Exchange Commission has issued a framework for domestic cryptocurrency exchange-traded funds that takes effect on October 16, initially covering Bitcoin and Ether. The regulator announced the final package on October 8, following consultations on its principles and draft rules earlier this year.

The SEC announcement identifies 11 notifications governing fund establishment, investment management and supervision. It establishes requirements for future products rather than announcing that a particular ETF has been approved or will begin trading on the effective date.

Each crypto ETF must passively track a single crypto asset. Its average net exposure to that asset must equal at least 80% of net asset value over each accounting year. That is an annual fund-structure requirement, rather than a requirement to maintain exactly 80% exposure at all times.

The funds must use digital-asset custodians regulated by the SEC and trade exclusively on the Stock Exchange of Thailand. Investors must acknowledge the product's risks before trading, and securities firms cannot offer margin loans to finance purchases of these ETFs.

The rules also define who can perform supporting functions. An asset manager outsourcing digital-asset investment management may use only a licensed digital-asset fund manager. Eligible digital-asset custodians and other qualified digital-asset operators can apply to supervise crypto ETFs, subject to the specified registration and readiness requirements.

Separately, mutual funds and private funds will be allowed to invest in Thai crypto ETFs, with existing investment limits continuing to apply. These provisions distinguish management, supervision and custody as regulated responsibilities rather than treating an exchange listing as the whole operating framework.

The announcement does not identify fund names, tickers or first trading dates. October 16 marks the start of the regulatory framework; investors and issuers still need product-specific disclosures to establish what subsequently launches.