Thailand finalizes rules for bitcoin and ether ETFs, effective Oct. 16

Thailand's Securities and Exchange Commission (SEC) has finalized rules for setting up and running exchange-traded funds (ETFs) that hold bitcoin and ether directly. The SEC said on Oct. 8 that it had issued 11 related notifications, which take effect Oct. 16. Thai asset management companies will be able to launch ETFs that track the price of bitcoin or ether and list them on the Stock Exchange of Thailand (SET).

The 11 notifications consist of five from the Capital Market Supervisory Board and six from the Office of the SEC. They amend rules on fund establishment and investment, services to clients investing in foreign-currency-denominated products, outsourcing, and margin loans, and include a separate notification listing the cryptocurrencies crypto ETFs may invest in. Rules on fund prospectus forms and on the qualifications and registration of mutual fund supervisors were also revised.

Two coins, for now

Crypto ETFs must follow the rules that apply to ETFs generally as well as the rules on digital asset investment by mutual funds. They must be managed as passive vehicles that track the price of a single crypto asset, with average net exposure to that asset of at least 80% of net asset value over each accounting year. The SEC will decide which assets are eligible based on liquidity, broad market acceptance, network security and investor protection. In the initial stage, the eligible assets are bitcoin and ether.

The funds' crypto assets may be held only by digital asset custodians regulated by the SEC. An asset manager that outsources digital asset investment management may do so only to a licensed digital asset fund manager. Digital asset custodians and other qualified operators may register as mutual fund supervisors, but only for crypto ETFs. The SEC said it may allow qualified foreign custodians in the future if it deems that necessary and appropriate.

No borrowing to buy

Securities companies may not provide margin loans to clients buying crypto ETFs. The SEC said this matches its approach to crypto trading through Thai digital asset operators, where lending to buy crypto is not permitted. Investors must receive information on the product's features and risks and confirm they understand them before trading, and brokers must stress appropriate asset allocation, avoiding concentrated exposure to digital assets and making decisions within each investor's own risk tolerance.

The rules also redraw the line with overseas products. Thai mutual funds and private funds, which until now could invest only in foreign crypto ETFs, may now also invest in Thai crypto ETFs within existing limits. In the initial phase, however, the SEC will not allow alternative products linked to foreign crypto ETFs, such as depositary receipts (DRs), to be issued or offered. Brokers will also be barred from facilitating investments in foreign crypto ETFs for clients who are neither institutional investors nor ultra-high-net-worth investors. The SEC said the measures are meant to support the development of crypto ETFs in Thailand and strengthen the capabilities of Thai operators.

Ten months from principles to rules

1. December 2025SEC Board resolves to develop crypto ETF rules
2. February 2026Capital Market Supervisory Board passes the same resolution
3. April 10Public consultation on principles opens (April–May)
4. Aug. 24Draft notifications published for consultation (August–September)
5. Oct. 811 notifications issued
6. Oct. 16Rules take effect

When it proposed the principles in April, the SEC noted that regulators in the United States, Canada, Australia and Hong Kong had already set up frameworks for crypto ETFs. Most respondents in both consultations supported the proposals, and after comments on custody, the SEC added room in the August draft for the use of foreign custodians. The August draft also carried principles for revising qualification requirements for foreign custodians used by mutual funds and private funds that invest in digital assets. The April principles and the August draft said fund assets must "primarily" be held with SEC-regulated custodians, while the final rules require custody "only" by SEC-regulated custodians and leave foreign custodians as a possible future option.

Attakrit Chimphlapibul, co-founder of Bitkub Group, which runs Bitkub, a major Thai crypto exchange, told Thai business publication Money and Banking that the rules could help build confidence, expand the investor base, and raise industry standards and regional competitiveness over the long term, but said actual results will depend on the readiness of operators and the response from investors.

Kimchi premium at 2.4%

As of 12:30 p.m. KST on Oct. 9, bitcoin traded at 112,988,000 won and ether at 3,419,000 won on Upbit's Korean won market. At the same time, bitcoin was at $82,187 and ether at $2,487 on Binance. Over 24 hours on Binance, bitcoin was down 1.0% and ether down 3.3%. The kimchi premium (the gap between prices on Korean exchanges and global markets) on Upbit was about 2.4% for both bitcoin and ether.