Thailand’s First Bitcoin ETF Approved by SEC
The Thai Securities and Exchange Commission (SEC) has approved the launch of Thailand’s first Bitcoin exchange-traded fund (ETF) by One Asset Management, targeting wealthy and institutional investors.
A Unique Investment Opportunity
The ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI) will be made available between May 31 and June 6, offering a unique investment opportunity for high-net-worth individuals and institutions.
- The fund invests in 11 prominent global funds to provide diversification and safety to investors.
- According to Pote Harinasuta, CEO of ONEAM, digital assets offer a low correlation to traditional financial instruments, making them suitable for diversifying investment risks.
ONEAM’s Bitcoin ETF stands out for its approach of investing in leading global funds, ensuring liquidity and safety for investors. The fund meets international standards for storing digital assets and has undergone regulatory scrutiny in the U.S. and Hong Kong.
While ONEAM celebrates its milestone, MFC Asset Management is awaiting SEC approval for its spot Bitcoin ETF, catering exclusively to high-net-worth individuals and institutional clients.
Bitcoin ETFs have gained momentum globally, with regulatory bodies in the U.S., Hong Kong, and Australia approving similar products, paving the way for increased adoption of cryptocurrencies.
Managing Risks in Crypto Investments
Despite bitcoin’s high average annual return of 124% over the past 11 years, its volatility remains a concern, with an average annual volatility of 83%.
- Integrating bitcoin with traditional assets can enhance expected returns while reducing risk-adjusted performance.
- ONEAM recommends allocating only 5% of the portfolio to BTC through the ETF to achieve an annual return of 8.90% while improving risk-adjusted returns.
Pote Harinasuta highlights the risks associated with direct bitcoin investments on various platforms, such as data loss or theft of digital assets. To address these concerns, the ONE Bitcoin ETF offers custodian-level security practices similar to those used by institutional investors, with offline storage for BTC to minimize online attack risks.
Hot Take: Embracing Crypto ETFs for Diversification and Security
As regulatory authorities around the world approve Bitcoin ETFs, investors have unique opportunities to diversify their portfolios and enhance security in their crypto investments. With the launch of Thailand’s first Bitcoin ETF catering to wealthy and institutional investors, the landscape of cryptocurrency investments is evolving to meet the needs of different market participants. By offering a diversified approach to investing in digital assets and implementing risk management strategies, these ETFs aim to provide a secure and robust investment vehicle for those looking to venture into the world of cryptocurrencies.
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