Thailand SEC to implement Bitcoin and Ethereum ETF rules on October 16

The Thailand Securities and Exchange Commission (SEC) has announced new regulatory rules for the establishment and listing of domestic cryptocurrency exchange-traded funds (ETFs), set to take effect on October 16. The initial framework will focus exclusively on Bitcoin (BTC) and Ethereum (ETH) ETFs, which must be traded on the Stock Exchange of Thailand (SET).

A key requirement of the new regulations is that these passive management funds must maintain an average net exposure of at least 80% of their net asset value (NAV) to the target cryptocurrency over a fiscal year. This rule ensures that the funds closely track the price of the underlying assets.

To ensure investor protection and operational integrity, asset management companies must demonstrate adequate personnel, business systems, and service provider frameworks. Assets must be held by digital asset custodians supervised by the SEC. Additionally, credit lending by securities companies for the purchase of these ETFs is prohibited. The rules also allow mutual funds and private funds to invest in these domestic crypto ETFs, following existing investment limits.