Thai Regulator Greenlights Crypto ETFs Under 11 New Rules, With Bitcoin And Ethereum As Sole Eligible Assets
Thailand’s Securities and Exchange Commission has issued 11 notifications establishing a comprehensive regulatory framework for cryptocurrency exchange-traded funds, set to take effect on October 16, 2026. The move positions Thailand as one of the more structured jurisdictions in Southeast Asia for regulated crypto investment products, following public consultations held between April and September that drew broad support from market participants.
In its initial phase, the framework permits crypto ETFs to invest exclusively in Bitcoin and Ethereum, selected based on liquidity, market acceptance, and network security criteria. Funds must operate as passive vehicles tracking the price of their underlying asset, maintaining average net exposure to a single cryptocurrency of at least 80 percent of net asset value over each accounting year. All fund assets must be held in custody by digital asset custodians regulated by the SEC.
The ETFs will be listed and traded solely on the Stock Exchange of Thailand. Notably, securities firms are prohibited from offering margin loans for crypto ETF purchases, aligning with existing rules that bar lending for direct cryptocurrency transactions through digital asset platforms. Investors will be required to acknowledge and confirm their understanding of product risks before trading, with brokers expected to promote diversified asset allocation rather than concentrated digital asset exposure.
Asset management companies must demonstrate organizational readiness — covering personnel, systems, and service provider arrangements — before launching a fund, and are permitted to outsource digital asset investment management only to licensed digital asset fund managers.
Ecosystem Expansion With Restrictions
Beyond the ETF framework itself, the SEC has amended existing rules to allow Thai mutual funds and private equity funds to invest in domestically listed crypto ETFs; previously, such funds could only access foreign equivalents. Investment limits applicable to these funds remain in place.
The regulator has also opened the door for digital asset custodians and other qualified digital asset business operators to register as mutual fund supervisors for crypto ETFs under Section 121 of the Securities and Exchange Act, subject to standards consistent with the existing supervisory regime. Custody of digital assets, whether performed directly or through a sub-custodian, must remain with licensed custodians, with the possibility of foreign custodians being approved in the future if conditions warrant.
However, the initial phase carries clear protective boundaries: the SEC will not permit alternative products referencing foreign crypto ETFs, such as depositary receipts, and securities companies may facilitate investments in foreign crypto ETFs only for institutional investors and ultra-high-net-worth individuals.
Taken together, the framework reflects a deliberate strategy of fostering domestic product development and building local operator capacity, while shielding retail investors from more complex or offshore exposures. For fund managers, custodians, and exchanges, the notifications define both the opportunity set and its constraints as Thailand’s crypto ETF ecosystem begins to take shape.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
