Thailand Approves Bitcoin and Ethereum ETFs Under New Rules Taking Effect October 16

Thailand is preparing to open a new route for cryptocurrency investment through its traditional stock market, with regulations allowing Bitcoin and Ethereum exchange-traded funds (ETFs) set to take effect on October 16, 2026. The country’s Securities and Exchange Commission (SEC) announced the finalized framework on October 8, establishing rules for funds that give investors exposure to crypto assets through regulated investment products.

The new framework allows eligible crypto ETFs to list and trade exclusively on the Stock Exchange of Thailand (SET). Rather than requiring investors to purchase and manage Bitcoin or Ethereum directly, these funds will offer exposure through securities-market infrastructure, with asset management companies responsible for operating the products under the new regulatory requirements.

The initial selection is limited to Bitcoin and Ethereum, reflecting the SEC’s approach to introducing crypto investment products within a defined regulatory structure. The rules are designed to expand investment options while setting requirements for fund management, asset custody, risk disclosure and investor protection.

Thailand Sets 80% Exposure and Custody Requirements

Under the new rules, crypto ETFs must operate as passive investment vehicles designed to track the price of a single underlying cryptocurrency. Each fund must maintain average net exposure of at least 80% of its net asset value to that asset over each accounting year. This requirement establishes a clear link between the fund’s performance and its chosen cryptocurrency.

The single-asset structure means a Bitcoin ETF would track Bitcoin, while an Ethereum ETF would track Ethereum. The framework does not initially provide for a fund to select any cryptocurrency it chooses. The SEC will determine eligible assets based on factors including liquidity, market acceptance, network security and investor protection.

Custody is another central component of the rules. Crypto ETFs must have their digital assets safeguarded by custodians regulated by the Thai SEC. The regulations also establish conditions for qualified digital asset businesses to perform fund-supervision functions, subject to the relevant registration and operational requirements.

Asset managers must demonstrate that they have the personnel, operational systems and service-provider arrangements needed to run the funds securely and efficiently. They must also disclose sufficient information about each product’s structure, investment strategy, service providers and risks so investors can understand what they are buying before committing capital.

Investor Protection and Market Access Under the New Framework

The SEC’s rules include measures intended to ensure investors understand the risks of crypto ETFs before trading. Investors will be required to acknowledge and confirm their understanding of relevant risks, while securities firms must emphasize appropriate asset allocation and decisions consistent with individual risk tolerance.

Brokerages will not be permitted to provide margin loans for purchases of crypto ETFs. This restriction limits the use of borrowed money to acquire the products and aligns with the regulator’s approach to controlling risks associated with leveraged cryptocurrency exposure.

The framework also allows Thai mutual funds and private funds to invest in domestically established crypto ETFs, subject to existing investment limits. This expands the range of regulated investment vehicles that can gain exposure to crypto assets through Thailand’s own capital market.

The rules take effect on October 16, but that date should not be confused with confirmation that Bitcoin and Ethereum ETFs will begin trading immediately. Asset managers must still meet applicable requirements and obtain the necessary approvals before individual products can launch. The timing of the first listings will depend on the readiness of issuers and the regulatory process.

For Thailand’s crypto market, the new framework represents a shift toward integrating digital assets into conventional securities-market channels. Its practical impact will depend on the funds that eventually reach the SET, the costs investors face and the level of demand for regulated crypto exposure. The initial focus on Bitcoin and Ethereum provides a limited starting point, while future expansion will depend on regulatory decisions and the development of the local market.