The Thailand Securities and Exchange Commission has opened a public consultation on principles for establishing and regulating crypto exchange traded funds (crypto ETFs) in Thailand, alongside proposed changes on delegating digital asset investment management for mutual funds and on appointing trustees for crypto ETFs. The framework is designed to enable spot crypto ETFs to be offered through mutual fund structures, with professional management and custody arrangements under existing ETF and digital asset fund rules, supplemented by additional investor protection requirements. In the initial phase, spot crypto ETFs would be structured as mutual funds investing directly in crypto assets, managed by asset management companies and operated on a passive basis. Funds would be required to maintain an average net exposure of at least 80 percent of net asset value to a single crypto asset over the accounting year, with eligible assets initially limited to Bitcoin and Ethereum. Crypto assets would primarily be held with SEC-regulated digital asset custodians, and crypto ETFs would be listed and traded exclusively on the Stock Exchange, supported by measures such as investor education, confirmation of risk understanding prior to trading, and enhanced disclosure. The proposals also include allowing mutual funds and private funds to invest in Thai crypto ETFs (previously permitted only in foreign crypto ETFs) subject to existing investment limits, while not permitting alternative products related to foreign crypto ETFs during the initial phase. On governance and service-provider rules, delegation of digital asset investment management for mutual funds would be limited to licensed Digital Asset Fund Managers. Digital asset custodians and other suitably prepared digital asset business operators would be eligible to act as fund supervisors for crypto ETFs, subject to qualification requirements and with the ability to appoint sub-custodians in line with existing rules, while digital asset custody must be performed by a licensed digital asset custodian. The SEC is also consulting on whether fund supervisors may appoint foreign digital asset custodians as sub-custodians under specified qualification and regulatory oversight conditions. The public hearing closes on 11 May 2026.
Thailand Securities & Exchange Commission 2026-04-10
Thailand Securities and Exchange Commission consults on framework to allow spot crypto ETFs investing in Bitcoin and Ethereum
The Thailand Securities and Exchange Commission has launched a consultation on a framework to establish and regulate spot crypto exchange traded funds, including rules on delegating digital asset investment management and appointing trustees. The proposals would allow Bitcoin and Ethereum spot ETFs as passively managed mutual funds with at least 80 percent exposure to a single crypto asset, held with SEC-regulated custodians and listed only on the Stock Exchange, with enhanced investor protection and disclosure. The consultation also covers permitting mutual and private funds to invest in Thai crypto ETFs and setting governance, delegation and custody requirements, including potential use of foreign sub-custodians.