Thailand's Securities and Exchange Commission (SEC) has finalized 11 regulations allowing Bitcoin and Ether exchange-traded funds (ETFs) to list on its main stock exchange, with the new rules taking effect on October 16, 2026. According to the SEC's October 8 statement, the framework establishes comprehensive requirements for fund operations, digital asset investment management and the appointment of qualified digital asset custodians and operators as mutual fund supervisors. The regulator stated that the measures would expand investor access to crypto investments, strengthen local operators and support the development of Thailand's crypto ETF market under investor protection safeguards. The framework comprises 11 notifications issued after public consultations in April-May and August-September, with most respondents supporting the proposed principles and draft regulations. As reported by BigGo Finance, the move provides Thai investors with a pathway to gain exposure to digital assets through the securities market without going through cryptocurrency exchanges.
Under the approved framework, each crypto ETF must operate as a passive investment fund designed to track the price of its underlying cryptocurrency. The SEC requires funds to maintain an average net exposure of at least 80% of their net asset value to a single eligible cryptocurrency over each accounting year. As reported by BigGo Finance, digital asset ETFs must be passively managed to track the price of the underlying asset, with net investment exposure to a single digital asset required to be maintained at no less than 80% of the average net asset value (NAV) over the fiscal year. During the first phase, the regulator will permit investment only in Bitcoin and Ether, with future additions depending on factors including liquidity, market acceptance, blockchain network security and investor protection standards. Asset management companies seeking to establish these funds must demonstrate qualified employees, adequate operating systems and suitable arrangements with service providers. The funds must use SEC-regulated digital asset custodians and be listed exclusively on the SET, with each crypto ETF required to comply with existing rules for ETFs and mutual funds investing in digital assets alongside additional safeguards for asset management companies.
The SEC has required crypto ETFs to hold fund assets with digital asset custodians licensed and supervised in Thailand. According to the framework, managers can outsource digital asset investment management, but only to firms holding the appropriate digital asset fund management licenses. The new rules allow digital asset custodians and other sufficiently prepared digital asset business operators to apply to become mutual fund supervisors for crypto ETFs. Eligible operators must meet financial, personnel and operational requirements, maintain those standards and restrict their supervisory role to crypto ETFs. The framework permits supervisors to appoint sub-custodians, provided that any digital asset custody services are performed by licensed custodians. The SEC may consider permitting qualified foreign digital asset custodians in the future where appropriate, with custody remaining with a licensed digital asset custodian even when assets are held through sub-custodians. Each asset manager still needs approval for its own fund before anything can be listed on the Stock Exchange of Thailand (SET), creating an additional layer of regulatory approval beyond the framework itself.
While domestic crypto ETFs will become eligible for listing, Thai authorities have maintained restrictions on access to foreign products during the initial rollout. As reported by BigGo Finance, securities companies are prohibited from extending margin loans for the purchase of digital asset ETFs, and investors must receive and acknowledge an explanation of the product's characteristics and risks prior to trading. The restriction applies even where foreign products track Bitcoin or Ether, with the SEC reserving the domestic listing route for locally established funds. Brokers are barred from providing margin lending services for the purchase of crypto ETFs, and all fund assets backing these ETFs will need to be held by digital asset custodians regulated by the SEC. During the initial phase, it will not allow alternative products linked to foreign crypto ETFs, such as depositary receipts, or securities companies to facilitate foreign crypto ETF investments for clients outside the institutional and ultra-high-net-worth investor categories. Direct investment in overseas digital asset funds is limited to institutional investors and ultra-high-net-worth individuals, with the issuance and sale of alternative products such as depositary receipts based on overseas digital asset ETFs not permitted.
Following the regulatory announcement, digital asset companies operating in Thailand expressed support for the new products. Attakrit Chimphlapibul, co-founder of Bitkub Group, told Money and Banking that U.S. spot Bitcoin and Ether ETFs had created new ways for institutional and retail investors to access cryptocurrencies. Bitkub Online confirmed it was prepared to support transactions involving asset management companies planning Bitcoin and Ether ETFs, subject to applicable regulations. Nirun Fuwattananukul, CEO of Binance TH by Gulf Binance, welcomed the regulatory decision and said the company was prepared to support fund launches through liquidity services and cooperation with asset managers. The SEC has also expanded investment eligibility for Thai mutual funds and private funds to include domestic crypto ETFs, subject to existing investment limits, allowing domestic mutual funds and private funds to invest in Thai-based crypto ETFs for the first time. Additionally, the investment scope for existing funds has been widened, with mutual funds and private funds that had previously been allowed to invest only in overseas crypto ETFs now able to invest in crypto ETFs established in Thailand as well, while existing investment limits remain in place. The regulator noted that in its public consultation conducted earlier this year, market participants broadly welcomed expanded access to digital assets through regulated channels, with the SEC emphasizing that domestic market infrastructure, investor protection, and education must be prioritized before extending digital asset ETF access to the general public.
