Thailand’s financial sector is taking a significant leap forward with the launch of the country’s first cryptocurrency exchange-traded fund (ETF) by One Asset Management (ONEAM). The Thai Securities and Exchange Commission (SEC) has given its approval for ONEAM’s Bitcoin ETF, marking a milestone in the country’s evolving regulatory framework for digital assets. The newly approved fund, called the One Bitcoin ETF Fund of Funds, will exclusively cater to institutional investors and high-net-worth individuals, with retail investors unable to participate. The distribution of the fund is scheduled to take place between May 31, 2024, and June 6, 2024.
This development comes as a result of regulatory changes made by the SEC in April, which allowed for restricted Bitcoin ETFs targeting institutional investors. Thailand is now aligning itself with other jurisdictions, such as the United States, Hong Kong, Australia, and the United Kingdom, that have already embraced Bitcoin ETFs. ONEAM’s Bitcoin ETF will invest in 11 prominent global Bitcoin funds, ensuring liquidity and security for investors. By providing exposure to Bitcoin within a regulated framework, the ETF addresses concerns like theft that can arise when individuals hold Bitcoin directly. This approach offers a more secure and convenient option for institutional investors looking to enter the cryptocurrency market.
While ONEAM has received regulatory approval, MFC Asset Management, another Thai firm, is still awaiting clearance for its own Bitcoin ETF product. Both offerings will be private placements available exclusively to qualified investors, highlighting the cautious approach taken by regulators in introducing these innovative investment vehicles. The approval of a Bitcoin ETF in Thailand reflects the increasing demand from local institutions to include Bitcoin in their investment portfolios. It also paves the way for broader mainstream adoption once public offerings become available, encouraging more investors to explore the potential of cryptocurrencies.
In the United States, spot Bitcoin ETFs have been experiencing consistent net inflows, attracting $105 million on the latest trading day. This comes as Bitcoin briefly surpassed the $70,000 mark on Monday before retracing to its familiar trading range. Analysts from Bitfinex suggest that the 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. Additionally, there has been a growing number of new accumulation addresses for both Bitcoin and Ethereum over the past month, indicating increasing bullish sentiment among investors despite the recent price stability.