Thailand's One Asset Management Receives Approval to Launch Country's First Crypto ETF

Ruholamin Haqshanas

Last updated:

June 4, 2024 08:09 EDT | 2 min read

Thailand’s financial landscape is taking a significant step forward as One Asset Management (ONEAM) becomes the first company to launch an exchange-traded fund (ETF) in the country that offers exposure to cryptocurrencies.

The Thai Securities and Exchange Commission (SEC) has endorsed ONEAM’s Bitcoin ETF, marking a milestone in the country’s evolving regulatory framework for digital assets.

The newly approved fund, named the One Bitcoin ETF Fund of Funds, will exclusively cater to institutional investors and high-net-worth individuals, according to regulatory filings.

Retail investors will be unable to participate in this offering.

Thailand’s Bitcoin ETF Set to be Distributed by June 6

the ONE Bitcoin ETF Fund is set to be distributed between 31 May 2024 and 6 June 2024.

It represents the conclusion of regulatory changes made by the SEC in April, which opened the door for restricted Bitcoin ETFs targeting institutional investors.

The move aligns Thailand with other jurisdictions that have already embraced Bitcoin ETFs, such as the United States, Hong Kong, Australia, and the United Kingdom.

According to Bangkok Post, the Thai SEC approved local asset management company One Asset Management to launch Thailand’s first Bitcoin ETF, which is limited to wealthy and institutional investors. The fund’s policy is to invest in 11 leading global funds and has passed…

— Wu Blockchain (@WuBlockchain) June 4, 2024

ONEAM’s Bitcoin ETF will invest in 11 prominent global Bitcoin funds, ensuring sufficient liquidity and security for investors.

By facilitating exposure to Bitcoin within a regulated framework, the ETF addresses concerns like theft that can arise when individuals hold Bitcoin directly.

This approach provides a more secure and convenient option for institutional investors seeking to enter the cryptocurrency market.

While ONEAM has secured regulatory approval, another Thai firm, MFC Asset Management, is still awaiting clearance for its own Bitcoin ETF product.

Both offerings will be private placements available exclusively to qualified investors, emphasizing the cautious approach taken by regulators in introducing these innovative investment vehicles.

The approval of a Bitcoin ETF in Thailand reflects the growing demand from local institutions to include Bitcoin in their investment portfolios.

It also sets the stage for broader mainstream adoption once public offerings become available, encouraging more investors to explore the potential of cryptocurrencies.

Bitcoin ETFs in the US See Consistent Inflows

In the US, spot Bitcoin ETFs have seen 15 consecutive days of net inflows, attracting $105 million on the latest trading day.

The sustained net inflows into Bitcoin spot ETFs come as Bitcoin briefly surpassed the $70,000 mark on Monday, marking the first time in a week that it reached such heights.

However, the price retraced to its familiar trading range, continuing its sideways movement.

Analysts from Bitfinex suggest that this correction phase seems to be approaching its end.

Long-term holders selling off their Bitcoin holdings was a significant factor in the correction from the all-time highs.

However, blockchain data indicates that these holders have started accumulating Bitcoin again for the first time since December 2023.

Furthermore, there has been a growing number of new accumulation addresses for both Bitcoin and Ethereum over the past month.

This trend indicates increasing bullish sentiment among investors, despite the price stability observed in recent times. The analysis from Bitfinex refers to data from CryptoQuant to support these observations.

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