Thailand's First Bitcoin Exchange-Traded Fund Gets Green Light

Local reports indicate that Thailand's Securities and Exchange Commission (SEC) has granted approval for the launch of the country's inaugural Bitcoin exchange-traded fund (ETF). Leading the charge is One Asset Management (ONEAM), introducing a Bitcoin ETF for affluent and institutional investors, labeled ONE-BTCETFOF-UI. The offering will be available from May 31st to June 6th.

This fund is poised to invest in eleven prominent global Bitcoin funds to ensure liquidity while adhering to international storage standards and regulatory compliance monitored by the U.S. and Hong Kong authorities.

Pote Harinasuta, the chief executive of ONEAM, highlighted that digital assets serve as an alternative investment with minimal correlation to traditional financial assets. Investors can utilize them to spread risk in their portfolios. Harinasuta emphasized the limited supply of Bitcoin, capped at 21 million, coupled with increasing demand due to its growing popularity, indicating substantial growth prospects for the cryptocurrency.

Over the previous 11 years, Bitcoin has recorded a remarkable average annual return of 124% with an 83% volatility rate. ONEAM suggests allocating approximately 5% of portfolios to Bitcoin for potential annual returns of about 8.9%, aiming to balance increased risks with manageable levels.

While acknowledging Bitcoin's inherent volatility, Harinasuta suggested that integrating it with conventional assets could enhance expected returns while moderating risk-adjusted performance.

In the global landscape, the rise of crypto ETFs gaining approval from regulatory bodies like the U.S. SEC is notable. The Thai ETF addresses a prominent investor worry: secure storage. Harinasuta emphasized the significance of utilizing ETFs for Bitcoin investment, mitigating risks such as data breaches and theft through institutional-grade offline custody measures.