Thailand SEC sets Oct. 16 start for bitcoin, ether ETF rules

Thailand’s Securities and Exchange Commission has issued 11 notifications creating a framework for locally listed crypto exchange-traded funds, with the rules taking effect Oct. 16, 2026. The framework makes bitcoin and ether the only eligible assets in the initial phase and sets requirements for fund management, custody and trading. The SEC detailed the measures in its Oct. 8 announcement.

The rules establish conditions for funds to be set up and traded; the effective date does not itself confirm that a particular fund will begin trading then. The SEC says crypto ETFs must comply with rules that generally apply to ETFs and mutual funds investing in digital assets, alongside the new safeguards.

What investment policy must a Thai crypto ETF follow?

Each fund must be a passive investment vehicle seeking to track the price of the crypto asset it holds. It must maintain average net exposure to one crypto asset of at least 80% of net asset value over each accounting year. The initial eligible assets are Bitcoin and Ethereum, with the SEC saying it will set eligibility based on liquidity, broad market acceptance, network security and investor protection.

The 80% test is an average over the accounting year, not a requirement that exposure remain at that level every day. The SEC announcement does not specify a benchmark, tracking-error limit or a requirement for direct replication. It says the fund must seek to track the asset’s price, and asset managers must disclose the fund’s characteristics, structure, investment mechanisms, service providers and specific risks.

Who holds the crypto, and where will shares trade?

Fund assets must be safeguarded by digital-asset custodians regulated by the SEC. Crypto ETFs will be listed and traded exclusively on the Stock Exchange of Thailand. Asset-management companies may outsource digital-asset investment management only to a licensed digital-asset fund manager.

The rules also allow digital-asset custodians and other qualified digital-asset businesses to apply to act as mutual-fund supervisors for crypto ETFs under Section 121 of the Securities and Exchange Act. They must demonstrate adequate financial standing, personnel and operational systems, and may supervise crypto ETFs only. If a supervisor delegates custody to a sub-custodian, digital assets still must be held by a licensed custodian. The SEC says it may allow qualified foreign custodians in the future if circumstances make that appropriate.

What limits apply to investors and brokers?

Investors must receive education about the product’s characteristics and risks and acknowledge their understanding before trading. Securities companies must not provide margin loans to finance crypto ETF purchases, and the SEC says they must emphasize appropriate asset allocation and avoiding concentrated digital-asset exposure.

Thai mutual funds and private funds may invest in locally established crypto ETFs, subject to existing investment limits. During the initial phase, firms cannot issue or offer products such as depositary receipts linked to foreign crypto ETFs, and brokers cannot facilitate foreign crypto ETF investments for clients who are neither institutional nor ultra-high-net-worth investors. The SEC’s framework therefore permits a local product structure while keeping the initial eligible assets and distribution routes limited, as The Block’s report on the rules also notes.

References

• Oct. 8 announcement — sec.or.th
• The Block’s report on the rules — theblock.co