Thailand Considers Listing Bitcoin ETFs on Local Exchanges

Thailand is evaluating the possibility of listing Bitcoin exchange-traded funds (ETFs) on local exchanges.

Thailand is considering listing Bitcoin exchange-traded funds (ETFs) on local exchanges to offer both individuals and institutions exposure to the leading cryptocurrency, according to a report by Bloomberg on March 7.

The move is part of Thailand's broader efforts to keep pace with the growing adoption of cryptocurrencies around the world.

In June 2024, the Securities and Exchange Commission (SEC) greenlit the country's first Bitcoin ETF, albeit for professional investors, offering indirect exposure to international Bitcoin ETFs.

The SEC-approved ETF, launched by One Asset Management (ONEAM), is structured as a "fund of funds." This means it provides investors with exposure to Bitcoin through investments in 11 major global Bitcoin funds, aiming to mitigate the risks associated with directly holding the volatile cryptocurrency. However, access to the fund is limited to accredited and institutional investors.

The current proposal for locally-listed ETFs would mark a shift towards broader market accessibility and aims to position Thailand as a leader in digital asset innovation in the Asia-Pacific region.

“Like it or not, we have to move along with more adoption of cryptocurrencies worldwide,” SEC Secretary-General Pornanong Budsaratragoon said on Tuesday. “We have to adapt and ensure that our investors have more options in crypto assets with proper protection.”

The SEC is also considering other measures, such as the issuance of stablecoins backed by government or corporate bonds, as part of its strategy to broaden access to both digital and traditional financial markets.

In December ,Binance’s Thai subsidiary, Gulf Binance, endorsed Prime Minister Thaksin Shinawatra's proposal for a Bitcoin sandbox pilot in Phuket, while urging caution and thorough evaluation from the Bank of Thailand (BoT).

Describing Thaksin's proposal as a significant step for Thailand's digital economy, Gulf Binance CEO Nirun Fuwattananukul highlighted how it aligns with global crypto adoption trends and Thailand's economic strengths.

Emphasizing the need for a comprehensive legal framework and close collaboration between government agencies, Nirun noted, “This initiative not only reflects the momentum of crypto adoption but also demonstrates that leaders at the highest level are embracing these transformative technologies. As more countries adopt digital assets and cryptocurrencies, Thailand must not be left behind."

Digital asset trading activity in Thailand is picking up steam. As of November 2024, there were around 270,000 active crypto trading accounts.