Thailand proposes Bitcoin and Ethereum ETF rules favoring local firms

Thailand's SEC opened public comment on a proposed framework for Bitcoin and Ethereum ETFs. The framework would initially allow passive, single-asset funds. Each fund would need average net exposure of at least 80% of net asset value to its chosen asset over an accounting year. Locally established ETFs would trade only on the Stock Exchange of Thailand. Their assets would initially need to be held primarily by digital-asset custodians regulated by the Thai SEC. Crypto ETFs in the United States have attracted more than $60 billion in net inflows since launch. Bitcoin ETFs account for about $54 billion of those inflows. Ethereum products account for roughly $12 billion. Newer crypto ETF offerings account for the remaining inflows. The proposal would not ban foreign crypto products. Mutual and private funds can already invest in overseas crypto ETFs under existing rules. The SEC is separately consulting on rules that could eventually allow qualified foreign custodians. Thailand would initially restrict some alternative products linked to foreign crypto ETFs. The restrictions would cover depositary receipts referencing those ETFs. They would also cover certain securities-company arrangements for customers outside institutional and ultra-high-net-worth categories. Locally domiciled ETFs would therefore provide the most direct retail-facing route under the proposed framework. The SEC registry lists Rakkar Digital and Orbix Custodian as licensed custodial wallet providers. The registry lists Soberin, Orbix Invest and Merkle as registered digital-asset fund managers. Thailand also has 24 licensed mutual-fund management companies. Those firms could compete for roles if the framework is finalized. The consultation does not identify an ETF applicant, a custodian mandate or a likely beneficiary. Investors would need to complete product-risk education and acknowledgment requirements before trading. Intermediaries would be expected to assess diversification, risk tolerance and financial capacity. Comments close Sept. 20. The SEC expects related rules to take effect later in 2026. No ETF launch date has been set.