The Thai company One Asset Management has recently obtained authorization to launch the first crypto ETF in Thailand. A significant step forward for the country, what changes will it bring? All the details in the article.
Summary
A step forward for the financial market of Thailand: crypto ETFs approved
As anticipated, the financial landscape of Thailand is making a significant leap forward with One Asset Management (ONEAM) becoming the first company to launch an exchange-traded fund (ETF) in the country, offering exposure to cryptocurrencies.
The Thai Securities and Exchange Commission (SEC) has approved ONEAM’s Bitcoin ETF, marking a milestone in the evolving regulatory framework for digital assets in the country.
The fund just approved, named One Bitcoin ETF Fund of Funds, will be aimed exclusively at institutional investors and individuals with a high net worth, according to the regulatory documents.
Retail investors will not be able to participate in this offer, which will be distributed between May 31, 2024, and June 6, 2024.
This development concludes the regulatory changes made by the SEC in April, which opened the doors to Bitcoin ETFs subject to restrictions aimed at institutional investors.
The move aligns Thailand with other jurisdictions that have already embraced Bitcoin ETFs, such as Stati Uniti, Hong Kong, Australia e Regno Unito.
Liquidity, security, and convenience of Bitcoin ETFs
The Bitcoin ETF by ONEAM will invest in eleven major global Bitcoin funds, ensuring sufficient liquidity and security for investors.
Facilitating exposure to Bitcoin within a regulated framework, the ETF addresses concerns such as theft that can arise when people hold Bitcoin directly.
This approach offers a safer and more convenient option for institutional investors who wish to enter the bull and bear cryptocurrency market.
While ONEAM has obtained regulatory approval, another Thai company, MFC Asset Management, is still awaiting authorization for its own Bitcoin ETF product.
Both offerings will be private placements available exclusively to qualified investors. Thus emphasizing the cautious approach adopted by the regulatory authorities 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.
Furthermore, it lays the foundation for a wider mainstream adoption once public offerings become available, encouraging a greater number of investors to explore the potential of cryptocurrencies.
The increase in inflows into spot Bitcoin ETFs
In the meantime, in the United States, spot Bitcoin ETFs have recorded net inflows for 15 days in a row, attracting 105 million dollars on the last trading day.
These continuous inflows come at a time when Bitcoin briefly surpassed the $70,000 threshold on Monday, marking the first time in a week that it reached such levels.
However, the price subsequently retraced towards its usual trading range, continuing to move sideways. Analysts at Bitfinex suggest that this correction phase might be nearing its conclusion.
The sales of Bitcoin holdings by long-term holders have been a significant factor in the correction from all-time highs.
However, blockchain data shows that these investors have started accumulating Bitcoin again for the first time since December 2023. Additionally, in the past month, the number of new accumulation addresses has increased for both Bitcoin and Ethereum.
This trend indicates a growing bullish sentiment among investors, despite the stability of prices observed recently. The analysis of Bitfinex, supported by data from CryptoQuant, confirms these observations.
