Spot Bitcoin ETFs Get Go-Ahead in Thailand as SEC Adopts new Rules

Exchange-Traded Funds (ETFs) for spot Bitcoin have been authorized by the Securities and Exchange Commission (SEC) of Thailand, after a recent revision to its laws. The well-known Bangkok Post newspaper revealed this event in an article, citing recent remarks made by Pornanong Budsaratragoon, the Secretary-General of the Thailand SEC office.

Spot Bitcoin ETFs Get Go-Ahead in Thailand as SEC Adopts New Rules. Source: Forbes

Interestingly, Budsaratragoon disclosed that the SEC had authorized the launch of spot Bitcoin ETFs by private asset management firms in Thailand during a board meeting. The success of similar products in the US market led to this decision. Previous to this, the regulatory structure that governed financial firms in the country did not mention bitcoin exchange-traded funds (ETFs). Budsaratragoon highlighted the persistent requests from asset managers in Thailand to be allowed to launch cryptocurrency-related products. The head of the Thailand Securities and Exchange Commission underlined that, considering the dangers associated with digital assets—particularly the heightened volatility in the cryptocurrency market—the regulatory body needed to assess whether it was practical to expose investors to them.

After carefully considering all relevant factors, the securities regulator has now changed its regulations to permit spot Bitcoin ETFs. Remarkably, South Korean officials are also debating whether or not to authorize these assets. Thai companies engaged in securities transactions can support trading in any asset that the country’s SEC has classified as a security. Spot Bitcoin ETFs are now regarded as securities and may be traded by these organizations due to a recent regulatory change. 

However, should any Thai asset manager decide to introduce one, low-income retail investors are prohibited from participating in it. The Thailand Securities and Exchange Commission has mandated that asset managers can only provide these assets to high-net-worth individuals and regulated clients. 

Spot Bitcoin ETF’s Impressive Record in The US

In the US market, spot Bitcoin ETFs have been successful. The new legal shift aligns with the growing demand for spot Bitcoin exchange-traded funds (ETFs) in the US. This is demonstrated by the impressive $788 million inflow that the BlackRock iShares Bitcoin Trust (IBIT) received on March 6. Interestingly, IBIT just passed $10 billion in assets under management (AUM), faster than any other ETF in US history. As of right now, its AUM is over $12 billion.
Market observers credit several causes, such as the demand sparked by spot Bitcoin ETFs, for the continuous increase in the value of Bitcoin. Bitcoin (BTC) is currently valued at the $69,190.01 mark amid this rising trend.

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