SEC allows securities firms to offer spot Bitcoin ETFs to elite investors

The Securities and Exchange Commission (SEC) is in the process of permitting securities firms to offer spot Bitcoin Exchange-Traded Funds (ETFs) trading to institutional and high net worth (HNW) investors.

The information became public when InnovestX Securities, a unit of SCB X Group, announced on its website that it had recently discussed the matter with the SEC and obtained approval to offer spot Bitcoin ETF trading to its HNW and institutional investor clientele.

The SEC, however, has confirmed that it has no intention of allowing asset management companies to launch spot Bitcoin ETFs in Thailand, particularly for retail investors.

Anek Yooyuen, SEC Deputy Secretary-General, highlighted that the decision is based on concerns about the limited understanding retail investors have about investing in digital assets.

The SEC advises retail investors keen on digital assets to place orders through local digital asset exchange operators. These operators are licensed by the SEC and regulated under the Digital Asset Decree, which is designed to protect investor benefits.

Anek also drew attention to the contrasting environments of the US and Thai stock markets.

“We would like to see spot Bitcoin ETFs develop for a while, which is why we are barring retail investment.”

In related updates, the SEC is contemplating an increase in the capitalisation of digital asset exchange operators from 15 million to 25 million baht. This is to accommodate trading volumes and ensure that exchange operators have adequate resources to protect customer assets. A public hearing regarding this change is currently underway.

To further safeguard customer assets, the SEC plans to enforce a requirement for digital asset operators to separate customer assets, to be held by a custodian company. Three financial institutions have applied for custodian licenses and are under review.

Finally, the SEC has revealed plans to facilitate more investment token issuance this year, specifically for the green economy, soft power and asset-backed businesses. These investment tokens are classified as securities, not digital assets, and will be regulated under the SEC Act.

The issuer will be required to submit investment disclosure filings by initial coin offering regulations, reported Bangkok Post.