Thailand’s First Spot Bitcoin ETF

Thailand is also getting in on the Bitcoin adoption race and is set to launch its first spot Bitcoin ETF.

Thailand is preparing to launch its first spot Bitcoin ETF, making it the latest country to join the crypto adoption race.

The Securities and Exchange Commission (SEC) has approved the launch of the ETF by One Asset Management (ONEAM), beating out MFC Asset Management, which is still awaiting approval for its own ETF.

The ONE Bitcoin ETF (ticker: ONE-BTCETFOF-UI) is expected to launch between May 31 and June 6, offering investors direct exposure to the price of Bitcoin.

The ETF will be listed on the Stock Exchange of Thailand (SET) and will trade in Thai baht.

The launch of the spot Bitcoin ETF in Thailand is a significant development for the crypto industry in the country.

It follows the recent approval of a digital asset exchange license by the SEC, which will allow licensed exchanges to operate legally in Thailand.

The government is also considering a proposal to legalize crypto payments in the country.

Interest in crypto-assets, their resolution, and investor protection is gaining a lot of interest, as evidenced by ONEAM's assessments.

“Digital assets are an alternative asset that have low correlation with other financial assets. They are suitable to help investors diversify investment risks,” said ONEAM.

However, the company's recommendations are clear, as is the Bitcoin adopting strategy itself.

“Investing in Bitcoin can offer good returns, but comes with high volatility,” ONEAM said.

The company recommends that investors allot only 5% of their portfolio to Bitcoin to obtain a return of 8.90% per year.

The return relative to the risk of this portfolio (the Sharpe ratio) is 0.71, with a maximum drawdown of -22.4%.

A portfolio without Bitcoin generates a return of 5.80% per year, with a Sharpe ratio of 0.48 and a maximum drawdown of -20.4%.