Thailand proposes rules for Bitcoin and Ethereum ETFs

Thailand’s SEC drafts rules for local crypto ETFs

Thailand’s Securities and Exchange Commission (SEC) has released draft regulations for exchange-traded funds (ETFs) that track Bitcoin and Ether. These rules would allow asset managers to create ETFs that follow the price of these two cryptocurrencies. The SEC is now asking the public for feedback on the proposals.

An ETF is a type of investment fund that trades on a stock exchange, similar to a stock. These crypto ETFs would let investors gain exposure to Bitcoin or Ether without directly owning the digital assets.

What the draft rules include

• The ETFs would trade only on the Stock Exchange of Thailand (SET).
• Each ETF would track either Bitcoin or Ether, not both.
• The ETF must hold at least 80% of its assets in the tracked cryptocurrency.
• Mutual funds and private funds could invest in these Thai crypto ETFs, as well as foreign crypto ETFs, within existing limits.
• Initially, only passive ETFs—those that follow the price without active management—would be allowed.

Changes to custody requirements

The SEC has revised its earlier proposal on how these ETFs should store their crypto assets. Initially, the regulator suggested allowing foreign digital asset custodians, but the new draft requires ETFs to primarily use local custodians. Foreign custodians may be permitted later if needed.

A separate proposal outlines qualifications for foreign custodians serving mutual and private funds investing in digital assets. These custodians must be regulated by a recognized authority and meet standards the Thai SEC considers adequate for protecting investor assets.

Public feedback open until September 20

The SEC is accepting comments on both the ETF draft rules and the custodian proposal until September 20, 2026. The draft follows an earlier consultation in April, where most respondents supported the framework but suggested changes to custody arrangements.

What is confirmed

• Thailand’s SEC has released draft regulations for Bitcoin and Ether ETFs.
• The ETFs would trade on the Stock Exchange of Thailand.
• Only Bitcoin and Ether are eligible for these ETFs initially.
• Public feedback is open until September 20, 2026.
• The SEC has revised its approach to foreign digital asset custodians.

What is still unclear

• Whether foreign custodians will be permitted for ETFs in the future.
• If the final rules will include additional cryptocurrencies beyond Bitcoin and Ether.
• When the ETFs might launch if the rules are approved.

Why this matters for investors

If approved, these ETFs would provide a regulated way for investors in Thailand to gain exposure to Bitcoin and Ether through traditional financial markets. This could increase institutional interest in cryptocurrencies in the country.

Sources

• Cointelegraph
• Thailand SEC announcement
• Thailand SEC April consultation