Thailand's SEC finalizes Bitcoin and Ether ETF rules for October 16 launch

Thailand's Securities and Exchange Commission has finalized regulations for crypto exchange-traded funds, set to take effect on October 16, 2026. The framework initially limits eligible assets to Bitcoin and Ether, which must list exclusively on the Stock Exchange of Thailand. The rules mandate passive management, prohibit margin loans, and require investor education. Additionally, local mutual and private funds are now permitted to invest in these domestic crypto ETFs.

Finalization of crypto ETF regulations

• ▪The finalized Thai crypto ETF framework comprises 11 notifications issued after public consultations held in April-May and August-September 2026
• ▪Thailand's Securities and Exchange Commission finalized regulations for crypto exchange-traded funds (ETFs) to list on the Stock Exchange of Thailand, effective October 16, 2026

Investment rules and eligible assets

• ▪Bitcoin and Ether are the only eligible underlying assets for Thai crypto ETFs initially, with future eligibility determined by liquidity, market acceptance, network security, and investor protection
• ▪During the initial phase of Thailand's new crypto ETF rules, Thailand will not allow alternative products linked to foreign crypto ETFs, such as depositary receipts, or permit brokers to facilitate foreign crypto ETF investments for retail clients
• ▪Thai crypto ETFs must follow a passive investment strategy tracking a single crypto asset and maintain an average net exposure of at least 80% of net asset value during each accounting year

Investor protection and suitability

• ▪Before trading crypto ETFs, investors must receive education about the features and risks of the products and confirm their understanding of them
• ▪Securities companies in Thailand must encourage suitable asset allocation and investment decisions based on their clients' risk tolerance when offering crypto ETFs

Regulations for digital asset custodians

• ▪The Securities and Exchange Commission may consider permitting qualified foreign digital asset custodians to hold Thai crypto ETF assets in the future
• ▪Thai crypto ETFs must use digital asset custodians regulated by the Securities and Exchange Commission, with custody remaining with a licensed custodian even when held through a sub-custodian

Fund investment in domestic crypto ETFs

• ▪Previously, Thai mutual funds and private funds were only permitted to invest in foreign crypto ETFs rather than domestic ones
• ▪Thailand's Securities and Exchange Commission expanded investment eligibility for Thai mutual funds and private funds to include domestic crypto ETFs

Debatable claims

• ▪Restricting Thai crypto ETFs to Bitcoin and Ether unnecessarily limits market innovation
• ▪Allowing mutual funds to invest in crypto ETFs exposes traditional savers to excessive risk
• ▪Thailand should allow retail investors to access foreign crypto ETFs
• ▪Thailand's ban on margin loans for crypto ETFs is justified to protect retail investors