“Thailand’s SEC Approves First Bitcoin ETF, Embracing Risk Diversification through Indirect Investment”

"Thailand's SEC Approves First Bitcoin ETF, Embracing Risk Diversification through Indirect Investment"

"Thailand's SEC Approves First Bitcoin ETF, Embracing Risk Diversification through Indirect Investment"

According to a report by the Bangkok Post, the Securities and Exchange Commission of Thailand has approved One Asset Management (ONEAM) to become the first company in Thailand to launch a Bitcoin spot ETF. It is reported that the fund will not directly invest in Bitcoin, but will indirectly invest through 11 leading global Bitcoin spot ETFs to ensure liquidity and security. However, it should be emphasized that the fund is only available to institutional investors and not accessible to retail investors.

Pote Harinasuta, CEO of ONEAM, stated that there are additional risks in directly investing in Bitcoin through various platforms. Past issues have included data loss or hackers stealing digital assets through the internet. When investing through an ETF, the unit holders’ data or tokens will be distributed through custodians, which means that the tokens can be stored offline and have higher security. Pote Harinasuta suggested that investors allocate 5% of their investment portfolios to Bitcoin. Although this may increase the overall volatility of the portfolio, holding Bitcoin can help improve expected returns and the portfolio’s Sharpe ratio.

In addition to the approved ONEAM, asset management company MFC is also awaiting approval from the Securities and Exchange Commission of Thailand for its Bitcoin ETF, which is also limited to institutional investors.