Thailand SEC Drafts Bitcoin and Ether ETF Rules, Opens Public Consultation

Thailand's Securities and Exchange Commission (SEC) has advanced its framework for locally listed spot Bitcoin and Ether exchange-traded funds (ETFs), publishing draft regulations and opening a public consultation on Monday. The two consultation papers cover proposed rules for Thai crypto ETFs and qualification standards for foreign digital asset custodians serving mutual and private funds investing in digital assets.

Under the proposed framework, asset managers would be permitted to launch passive ETFs tracking either Bitcoin (BTC) or Ether (ETH), the only two crypto assets eligible during the initial stage. Each ETF must track a single asset and maintain average net exposure of at least 80% of its net asset value to that asset over each accounting year. Bitcoin and Ether ETFs would trade exclusively on the Stock Exchange of Thailand (SET), and the regulator has ruled out alternative products tied to foreign crypto ETFs, including depositary receipts, during the initial phase. Mutual and private funds would also be allowed to invest in Thai-domiciled crypto ETFs alongside the foreign crypto ETFs they can already access, subject to existing investment limits.

The draft regulations follow an April consultation on the framework's broader principles, which the SEC said received broad support but prompted revisions to custody arrangements. Under the revised approach, crypto ETFs would continue relying primarily on onshore digital asset custodians, though the SEC may permit qualified foreign custodians when necessary. Separately, foreign custodians serving mutual and private funds investing in digital assets would need to be supervised by a regulatory authority with adequate legal powers.

The move is part of Thailand's broader ambition to position itself as a global digital asset hub for institutional investors. It comes as Bitcoin ETF inflows globally hit $1.9 billion in the strongest week since October 2025, signaling renewed institutional appetite for regulated crypto exposure.