Thailand Approves Southeast Asia's First Bitcoin Spot ETF

Thailand Approves Southeast Asia's First Bitcoin Spot ETF

Thailand has become the first country in Southeast Asia and the second in Asia to approve a Bitcoin spot ETF. According to the Bangkok Post on Tuesday (June 4), the Thailand Securities and Exchange Commission has accepted One Asset Management (ONEAM) as the first company to launch a Bitcoin ETF.

Although the Thai regulator has approved Bitcoin spot ETF trading, it is limited to certain qualified investors and institutional investors.

The ETF, named ONE-BTCETFOF-UI, is scheduled to be distributed between May 31 and June 6. ONEAM will invest the funds in 11 major global Bitcoin funds to ensure adequate liquidity and security.

"Digital assets are an alternative asset class with low correlation to other financial assets. They are suitable for helping investors diversify their investment risks," said Pote Harinasuta, CEO of ONEAM. He emphasized that a key feature of the Bitcoin ETF is the secure storage of coins. Direct investment in Bitcoin through various platforms involves risks, including data loss or digital assets being stolen online.

"When investing through an ETF, the data or coins of unit holders are distributed via custodians, which adhere to the same standards used by institutional investors, meaning offline storage of coins, which is very safe," Pote explained.

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Bitcoin Spot ETF Allocation Recommendation

ONEAM recommends that investors allocate only 5% of their portfolio to Bitcoin to achieve an annual return of 8.90%. The risk-adjusted return of this portfolio (Sharpe ratio) is 0.71, with a maximum drawdown of -22.4%. A portfolio without Bitcoin yields an annual return of 5.80%, with a Sharpe ratio of 0.48 and a maximum drawdown of -20.4%.

Bitcoin ETFs have gained international recognition, especially after the US SEC approved them. In April, the Hong Kong Securities and Futures Commission permitted the establishment of ETFs investing in Bitcoin and Ethereum. Australia also opened Bitcoin spot ETF trading in early June

By approving the Bitcoin ETF, Thai regulators acknowledge the growing demand from local institutions to increase Bitcoin allocations. This move could pave the way for broader mainstream adoption once the public offering becomes available.

Conclusion

Thailand's approval of the first Bitcoin spot ETF in Southeast Asia marks a significant milestone for the region's cryptocurrency market. This development reflects the growing institutional demand for Bitcoin and highlights the country's progressive approach to digital asset investment. By limiting ETF access to qualified and institutional investors, Thailand ensures a measured and secure entry into the crypto market. The move is poised to enhance portfolio diversification opportunities for investors while maintaining robust security standards. As international recognition of Bitcoin ETFs increases, Thailand's proactive stance may encourage broader mainstream adoption and position the country as a regional leader in digital asset innovation.

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*Disclaimer:

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