Thailand's SEC to Allow Bitcoin and Ethereum ETFs Starting October 16

Overview of Bitcoin and Ethereum ETFs to be Allowed in Thailand

The Thai SEC (Securities and Exchange Commission) has finalized a new regulatory framework that marks a significant turning point in the country's cryptocurrency market.

Effective October 16, 2026 (Friday), trading of Bitcoin (BTC) and Ethereum (ETH) spot ETFs (Exchange-Traded Funds) will officially be allowed on the SET (Stock Exchange of Thailand). This regulation aims to provide a new environment for individual and institutional investors who have previously had concerns about opening accounts at cryptocurrency exchanges and managing wallets, allowing them to invest safely and under clear rules through existing securities accounts.

Strict Operational Requirements and Asset Custody Standards of the New Regulation

The framework based on 11 notifications issued by the Thai SEC establishes strict operational rules prioritizing investor protection and market stability.

Initially, eligible assets will be limited to two cryptocurrencies, Bitcoin and Ethereum, which possess sufficient liquidity and market acceptance. The fund will be designed as a single-asset type that passively tracks the prices of each cryptocurrency, requiring an average net exposure (investment ratio) of over 80% of NAV (Net Asset Value) for each fiscal year.

Additionally, substitutes through derivatives are not permitted, and the physical assets held by the fund must be stored with a local digital asset custodian approved by the Thai SEC.

Furthermore, the use of foreign custodians will be considered in the future when conditions are appropriate, and asset management companies acting as issuers will be required to provide proof of appropriate systems, specialized personnel, and management structures.

Leverage Regulation and Thorough Investor Protection

To prevent excessive speculative behavior and over-indebtedness risks in the market, very strict safety measures are being implemented.

Securities firms are completely prohibited from providing margin trading, collateral financing, or leverage for investors to purchase cryptocurrency ETFs. Brokers must provide sufficient information and education regarding investment risks to clients before transactions, ensuring that investors understand the risks correctly. At the same time, they are required to promote the formation of appropriate portfolios according to each client's individual risk tolerance.

Entry of Domestic Funds and Investment Restrictions on Foreign ETFs

With this regulatory relaxation, the operational freedom of domestic funds will increase, while gradual restrictions will be placed on individual investors' access to foreign products.

Direct investment in cryptocurrency ETFs listed on the domestic Stock Exchange of Thailand has been allowed for Thai investment trusts and private funds, ensuring a smooth inflow of institutional investor funds into the domestic cryptocurrency market. However, investments in foreign cryptocurrency ETFs and related depositary receipts (DRs), as well as brokerage services for foreign ETFs, will continue to be limited to specific categories such as institutional investors and ultra-high-net-worth individuals (UHNWI), with no unlimited access for general individual investors.

Future Prospects and Thailand's Hub Development

Although the institutional framework will come into effect on October 16, 2026, the SEC will still need to approve specific ETF products and market developments.

Each asset management company will need to sequentially proceed with fund registration, product approval, listing procedures on the SET, and the establishment of custodial systems. To achieve effective trading volumes and attract investment funds, it will be essential to set competitive trust fees, maintain tracking accuracy to minimize divergence from underlying assets, and provide continuous investor education.

With the abolition of the cryptocurrency capital gains tax by 2029 and the approval of USD-pegged stablecoins, attention is focused on whether Thailand can establish itself as a major hub for digital assets in Southeast Asia alongside this series of market promotion measures.

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