Thailand will allow Bitcoin and Ethereum exchange-traded funds (ETFs) to be listed starting from October 16. Thailand has finalized 11 rules that permit Bitcoin and Ethereum EFTs to be listed on its main stock exchanges, and the new regulations will take effect on October 16, 2026.

• Thailand has finally finalized 11 rules that allow Bitcoin and Ethereum to be traded on its stock exchanges. ETF
• October 16th will be the effective date for Thailand's new ETF framework and investor protection rules for cryptocurrencies.
• Each eligible ETF is required to hold at least 80% of its exposure to a single cryptocurrency on average each year.
• Thai securities firms are not allowed to provide margin loans for crypto ETF, nor are they permitted to sell overseas alternative products to retail customers.

The Securities and Exchange Commission of Thailand ( SEC ) announced this framework on October 8th and confirmed that cryptocurrencies ( ETF ) established locally in Thailand will only be traded on the Thai Stock Exchange ( SET ). In the initial phase, only Bitcoin and Ethereum are eligible cryptocurrencies, and at the same time, fund managers must also meet new requirements for investment, custody, and investor protection.

These regulations will enable Thai investors to gain exposure to these two cryptocurrencies through regulated securities products, without the need to directly purchase or hold digital assets. However, the implementation on October 16 does not mean that individual ETF will start trading on that day, as fund managers still need to meet the applicable requirements first.

Thailand's crypto ETF requires a holding of at least 80% in a single asset

According to the approved framework, each encrypted ETF must operate as a passive investment fund in order to track the price of its underlying cryptocurrency. SEC requires that, within each fiscal year, the fund's average net exposure to a single eligible cryptocurrency must reach at least 80% of its net asset value.

In the first phase, regulatory authorities only allow investments in Bitcoin and Ethereum. Whether other assets will be added in the future will depend on factors such as liquidity, market acceptance, blockchain network security, and investor protection standards.

Asset management companies seeking to establish such funds must demonstrate that they have qualified staff, a sufficient operational system, and appropriate arrangements with service providers. In addition to complying with the general ETF rules, their applications must also meet additional requirements for digital assets.

According to the requirements of SEC, ETF must entrust the management of fund assets to a digital asset custodian that has obtained permission from Thailand and is subject to its regulation. Managers may outsource the investment management of digital assets, but this is limited to companies that hold the corresponding digital asset fund management licenses.

According to Article 121 of Thailand's "Securities and Exchange Act," custodian service providers and other qualified digital asset business institutions may apply to serve as supervisors of mutual funds involving encrypted ETF. Applicants must demonstrate that they possess sufficient financial resources, qualified personnel, and operational systems.

This framework allows supervisors to designate sub-custodians, provided that any digital asset custody services must be carried out by licensed custodian institutions. SEC also retains the possibility of allowing qualified overseas custodian institutions to participate in the future, when deemed appropriate.

As early as August, Thailand had advanced the regulations for Bitcoin and Ethereum to the draft stage, with the same 80% exposure requirement proposed at that time. The final regulations were introduced after soliciting opinions on policy principles in April and May, and again after notifying about the draft in August and September.

Regulatory authorities stated that during these consultation processes, the majority of respondents supported the proposed framework.

Retail investors are still restricted in overseas ETF investments.

Although the local encryption ETF will be eligible for listing, Thai authorities still maintain restrictions on the access of overseas products during the initial launch phase.

Securities companies shall not provide convenience for customers who do not meet the qualifications of institutional investors or ultra-high net worth investors to invest in overseas crypto ETF. Thailand will also prohibit the initial issuance and sale of alternative products linked to overseas crypto ETF, including depositary receipts.

Even if overseas products track Bitcoin or Ethereum, this restriction still applies; SEC reserves local listing channels for funds established in Thailand.

At the same time, Thai mutual funds and private equity funds will be allowed to invest in local cryptocurrencies ETF. Previously, these funds could invest in overseas cryptocurrencies ETF under applicable investment rules.

SEC It is confirmed that when mutual funds and private equity funds purchase products established locally, the existing investment limits will continue to apply.

For retail customers purchasing the crypto ETF on the Thai Stock Exchange, brokers must explain the product features and risks before the transaction. Investors need to confirm that they understand these risks, while fund issuers must disclose details such as the investment structure, service providers, and custody arrangements.

Regulatory authorities have prohibited securities companies from providing margin loans for the purchase of the crypto asset ETF. Securities firms are also required to provide advice to clients on asset allocation to avoid excessive exposure to digital assets and to choose investments that are consistent with their risk tolerance.

Thai crypto companies are preparing to support Bitcoin and Ethereum ETF

After the regulatory announcement was released, digital asset companies operating in Thailand expressed their support for these new products.

Co-founders Bitkub Group and Attakrit Chimphlapibul stated on October 8th regarding Money and Banking, that US spot Bitcoin and Ethereum ETF have now provided institutions and retail investors with new ways to access cryptocurrencies.

When discussing the framework in Thailand, he stated that these products may provide opportunities for local asset management companies, custodian service providers, and other financial enterprises to participate in the operation of encryption ETF.

"However, the actual outcome will depend on the preparations of the operators and the reaction of investors," said Chimphlapibul, and reminded that the result will hinge on how businesses and customers respond to these products.

The Bitkub Online operating Bitkub Exchange indicates that it is ready to provide trading support for asset management companies that plan to launch Bitcoin and Ethereum ETF under the constraints of applicable regulations.

Gulf Binance's Binance TH CEO, Nirun Fuwattananukul, welcomed this regulatory decision and stated that the company is ready to support the launch of the fund through liquidity services and cooperation with asset management companies.

The Thai Digital Assets Association has raised another concern, which is investor participation. The association's chairman, Nares Laopannarai, stated that institutional investors and traditional stock market investors have always had limited interest in digital assets, and ETF has not yet gained significant popularity in Thailand either.

The association intends to promote cooperation among asset management companies, securities firms, and digital asset companies around encrypted ETF and tokenized investment products.

The new encryption ETF rules will take effect on October 16th.

Implemented on October 16th, it marks the continuation of several months of work by Thailand's securities regulatory authorities regarding cryptocurrency investment products.

In January this year, SEC Deputy Secretary-General Jomkwan Kongsakul outlined a plan to complete the final formulation of Thailand's local encryption ETF framework by 2026. At that time, regulatory authorities were preparing detailed rules covering investment structures and operations.

Subsequently, in February, Thailand expanded its legal framework for cryptocurrency derivatives, recognizing digital assets such as Bitcoin as eligible underlying instruments for regulated futures and options contracts.

Thereafter, SEC proposed again to allow retail customers to access certain overseas crypto derivatives through licensed intermediaries. The proposal in August required eligible products to meet specified standards and to adopt approved clearing arrangements, and the public comment period ended on September 30th.

Regarding the encryption of ETF, the announcement on October 8th confirmed the completed regulatory rules, which include provisions regarding fund establishment, outsourcing, custody, and securities trading.

The regulatory authorities announced this framework through 5 notices issued by the Capital Market Supervision Commission and 6 notices issued by the SEC Office. Among these are Notice No. Sor Nor .15/2569, which clarifies the range of cryptocurrencies that can be invested in for encryption ETF.

The remaining notices cover matters such as fund management, disclosure of prospectuses, customer service, supervision, and margin loans.

Asset management companies seeking to launch Bitcoin or Ethereum ETF products must comply with these requirements after the regulations come into effect. SEC did not disclose any approved ETF issuers, a confirmed transaction start date, or the code for the first batch of products in its announcement on October 8th.