Thailand's Securities and Exchange Commission (SEC) has allowed asset management companies to launch private funds to invest in spot Bitcoin ETFs traded on US exchanges.

The SEC clarified that there is one condition – only institutional investors and ultra-high net worth individuals can participate in these investments. Previously, rules governing the investments of asset management companies did not apply to cryptocurrency ETFs, and under Thai law, investment companies are only allowed to trade assets that are classified as securities. In January, the American financial regulator approved the launch of spot Bitcoin ETFs in the United States. Therefore, Thai law has defined shares in spot Bitcoin ETFs as securities and not crypto assets.

SEC Secretary General of Thailand Pornanong Budsaratragoon explained that only accredited investors will have access to cryptocurrency exchange-traded products (ETPs) due to high risks. The official noted that asset management companies have long approached the SEC with a request to provide them with access to digital assets, especially Bitcoin. However, it is very risky for asset managers to invest directly in digital assets due to the high level of risk.

Although the new rules do not apply to private investors in Thailand, retail cryptocurrency trading is very popular in the country. In March 2022, the Thai government declared the use of digital assets for payments illegal, and in July 2023, the SEC banned the use of cryptocurrencies for lending. But already at the beginning of this year, the SEC of Thailand lifted restrictions on investments in digital currencies and the provision of services for storing crypto assets.

Note that many regulators are becoming more loyal to cryptocurrency products. The UK's Financial Conduct Authority (FCA) recently said it is ready to allow large investment firms to list exchange-traded bonds (ETNs) backed by cryptocurrencies for trading.