Thai SEC approves private funds to invest in Bitcoin ETFs

Asset management firms have been granted permission by the Securities and Exchange Commission (SEC) to initiate private funds that invest in Bitcoin Exchange-Traded Funds (ETFs). However, this investment opportunity is only accessible to institutional investors and ultra-high-net-worth investors.

The SEC board gave its nod to asset management firms managing private funds that invest in Bitcoin ETFs listed on US exchanges just last week. The information was confirmed by SEC Secretary-General Pornanong Budsaratragoon.

The SEC Act allows securities companies to trade assets that are classified as securities. Following the approval of Bitcoin ETFs trading by the US SEC, Bitcoin ETFs are now classified as securities rather than digital assets, hence Thai securities firms are now allowed to invest in them. Nonetheless, only institutional and ultra-high-net-worth investors are entitled to invest in Bitcoin ETFs.

Pornanong explains that while asset management firms expressed their desire to invest in digital assets, primarily Bitcoin and Bitcoin ETFs, the SEC had to thoroughly consider whether it was judicious to allow these firms to invest directly in digital assets considering the high risk involved.

Furthermore, the current rules and regulations that oversee investments of asset management firms do not encompass investments in digital asset ETFs. Therefore, the SEC had to modify these rules and regulations to permit such investments. However, these investments are strictly limited to institutional and ultra-high-net-worth investors.

The SEC’s green light coincides with Bitcoin prices nearing their all-time high, making it an opportune moment for Thai investors to unlock their investments. Following a recent dip in price, Bitcoin was trading at over US$71,500 per coin yesterday afternoon.

Pornanong also stated that the SEC board had given the go-ahead to measures proposed by the Stock Exchange of Thailand (SET) to bolster the stock market supervisory and new listing rules. These measures aim to boost investor confidence in the Thai market and foster the long-term growth of the bourse.

They entail the supervision of short-selling transactions, naked short, programme trading, high-frequency trading, and curbing stock price fluctuations, reported Bangkok Post.