The Securities and Exchange Commission (SEC) of Thailand has officially approved One Asset Management (ONEAM) will launch the country’s first spot Bitcoin exchange-traded fund (ETF), a landmark move in the country’s financial sector. This ETF will be exclusively available to high net worth and institutional investors, reflecting a cautious regulatory stance towards retail investor participation.
Thailand Continues One-Time Bitcoin ETF Approval Wave
The approved fund is expected to be distributed from May 31 to June 6, with an assigned investment risk level of eight, indicating a high risk profile. The ONE Bitcoin ETF will distribute its assets among 11 leading global BTC funds to ensure liquidity and security.
These underlying funds have been approved by regulatory agencies in the United States and Hong Kong. “Digital assets are an alternative asset that is low correlated with other financial assets. They are suitable for helping investors diversify investment risks,” said ONEAM CEO Pote Harinasuta.
The approval follows a trend seen globally, with the US SEC and Hong Kong Securities and Futures Commission recently approving spot BTC ETFs. These international backers likely influenced the Thai SEC, highlighting the growing acceptance of Bitcoin ETFs as a mainstream investment option.
Bitcoin market capitalization stands at $1.4 trillion, up from gold is worth 14 trillion dollars, indicating substantial growth potential given BTC’s limited supply of 21 million coins. “Although Bitcoin’s supply is limited to 21 million, demand is increasing as it gains popularity. We see high growth potential for Bitcoin,” Harinasuta noted.
Over the past 11 years, BTC has demonstrated an average annual return of 124%, with an average volatility of 83% per year. “Investing in Bitcoin can offer good returns, but comes with high volatility,” Harinasuta pointed out.
ONEAM advises investors to allocate up to 5% of their portfolios to BTC. This strategy is expected to generate an average return of 8.90% per year with a Sharpe ratio of 0.71 and a maximum drawdown of -22.4%. For comparison, a portfolio without BTC would produce an average return of 5.80% per year, with a Sharpe ratio of 0.48 and a maximum drawdown of -20.4%.
A key feature of the ONE Bitcoin ETF is its emphasis on coin storage security. Harinasuta stressed the importance of secure storage, citing historical issues with data loss and theft in direct BTC investments.
“Investing in Bitcoin directly through various platforms carries risks, with past issues such as data loss or theft of digital assets through the online system,” he explained. The ETF mitigates these risks by using guardians that meet institutional standards, ensuring that coins are stored offline, providing high security.
The approval from the Thai SEC responds to growing demand from local institutions for regulated BTC investment options. This decision brings Thailand in line with other jurisdictions such as the United States, Hong Kong, Australiaand the United Kingdom, which adopted regulated Bitcoin investment vehicles earlier this year.
While ONEAM has consolidated its position as the first to offer a spot ETF, MFC Asset Management is still awaiting regulatory approval for its own ETF. The competitive landscape of Thailand’s emerging spot Bitcoin ETF market will be closely watched as more companies seek to exploit the growing institutional interest in digital assets.
At press time, BTC was trading at $69,045.
Featured image created with DALL·E, chart from TradingView.com
