Thailand’s Securities and Exchange Commission (SEC) has made changes to its regulations, allowing the creation of private funds that invest in spot Bitcoin exchange-traded funds (ETFs) traded on U.S. exchanges. However, this opportunity is only available to institutional investors and high-net-worth individuals.
SEC Secretary-General Pornanong Budsaratragoon revealed that the decision was made during the board meeting last week. The approval grants asset management firms the authority to oversee private funds dedicated to investing in spot Bitcoin ETFs traded on U.S. exchanges, following the recent approval granted by the U.S. SEC.
Asset management firms had requested the SEC to allow them exposure to digital assets, particularly Bitcoin and spot Bitcoin ETFs. However, careful consideration was required due to the high risk involved. The regulatory framework for asset management firms initially did not cover digital asset ETFs, prompting the SEC to introduce regulations to facilitate such investments. Under Thai regulatory frameworks, the shares in these financial products were reclassified as securities instead of cryptocurrency assets after the U.S. securities regulator approved spot Bitcoin ETFs in January.
This adjustment aims to provide investment opportunities for asset management firms and their clients, although it is limited to institutional and high-net-worth investors.
In addition to these changes, the SEC board has also endorsed enhancements to stock market supervision and new listing regulations by the Stock Exchange of Thailand (SET). These measures are designed to increase investor trust in the Thai market and promote long-term growth. They include oversight of activities such as short selling, naked short selling, program trading, high-frequency trading, and measures to stabilize stock price fluctuations.
Previously, in January, the Thailand SEC prohibited asset management firms from introducing their own versions of spot Bitcoin ETFs within the country. At that time, there was no policy in place to allow spot Bitcoin ETFs in Thailand. The recent regulatory changes have not addressed whether retail investors will have access to spot Bitcoin ETFs.
In summary, the Thailand SEC has amended its regulations to allow the creation of private funds that invest in spot Bitcoin ETFs traded on U.S. exchanges. This opportunity is limited to institutional investors and high-net-worth individuals. The SEC’s decision was made during a recent board meeting, following the approval granted by the U.S. SEC. These changes aim to provide investment avenues for asset management firms and their clients, despite being restricted to certain investor categories. Additionally, the SEC has also endorsed enhancements to stock market supervision and new listing regulations by the SET, with the goal of increasing investor trust and promoting long-term growth. However, it is important to note that retail investors’ access to spot Bitcoin ETFs has not been addressed in these regulatory changes.
🔥 Hot Take: Thailand’s SEC has opened up opportunities for institutional investors and high-net-worth individuals to invest in spot Bitcoin ETFs traded on U.S. exchanges through private funds overseen by asset management firms. This move follows the approval of spot Bitcoin ETFs by the U.S. SEC and aims to unlock investment avenues while considering the high risks involved. The regulatory changes also include enhancements to stock market supervision and new listing regulations by SET, focusing on increasing investor trust and promoting exchange growth. However, it remains unclear whether retail investors will have access to spot Bitcoin ETFs under these regulations.
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