Thailand opens private equity funds to invest in Bitcoin spot ETF! Limited to institutions and high net worth professional investors

This site (120btC.coM): After the United States’ Bitcoin spot ETF was approved, its influence gradually spread to countries around the world. The United Kingdom announced yesterday (11th) that for professional investors, Exchange-traded notes (cETNs) supported by crypto-assets will be opened. The London Stock Exchange took the lead in stating that it is expected to begin accepting applications for ETNs based on Bitcoin and Ethereum in the second quarter, broadening investors’ investment options for crypto-assets.

Thailand Opens Private Equity Fund to Invest in Bitcoin Spot ETF

Now, this trend is once again prevalent in Thailand. According to the Bangkok Post, Thailand’s Securities and Exchange Commission (SEC) has revised relevant regulations to allow asset management companies to launch private equity funds to invest in U.S. Bitcoin spot ETFs. This move allows institutional investors and high-net-worth individuals to participate. .

Before the Thai SEC revised regulations, asset managers were only allowed to offer trading in assets classified as securities. However, after the U.S. SEC approved a Bitcoin spot ETF in January, Thai regulations included Bitcoin. The stocks of spot ETFs are defined as securities, not digital assets, so Thai securities companies can now invest in them. Thailand SEC Secretary-General Pornanong Budsaratragoon said: The SEC needs to adjust rules and regulations to unlock such investments so that clients of asset management companies and securities companies can invest in Bitcoin spot ETFs through private equity funds, but this is only open to institutional and ultra-high net worth investments. investors invest.

She further pointed out that because the regulatory agency believed that Bitcoin and Bitcoin ETFs had higher risks, they ultimately only approved accredited investors to invest in Bitcoin spot ETFs through private equity funds, and did not allow direct digital investment. Assets may allow retail investors to participate.

In addition, Thailand still does not allow asset management companies to launch their own versions of Bitcoin spot ETFs in the country.

Thailand Restricts Cryptocurrency Use

In addition to not allowing retail investors to participate in Bitcoin spot ETFs, Thailand has also implemented some restrictions on retail cryptocurrency trading. In March 2022, the government declared it illegal to use digital assets for payments, and in July 2023, it banned the use of cryptocurrencies for lending and investing.

However, regulators in January this year lifted restrictions on retail investors purchasing digital tokens backed by real estate or infrastructure projects.

As for Thailand’s cryptocurrency exchange ecosystem, Bitkub is currently the largest local trading platform. CoinGecko data shows that it provides 107 currency pairs with a daily trading volume of approximately US$153 million. In addition, Binance has also entered the Thai market. Through Gulf Binance, a joint venture with GulfInnova, it provides services to Thai users under the "Binance TH" brand, including supporting Thai baht trading pairs and allowing direct deposits and withdrawals of fiat currency Thai baht.

This series of regulatory policies and market dynamics in Thailand demonstrates the image of a country that is seeking to balance the opportunities and risks of cryptocurrency while maintaining an open attitude.

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