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Thailand proposes a Bitcoin and Ethereum ETF framework favoring local custody
The draft rules require ETFs to keep at least 80% average net exposure to their chosen asset and include trading limits that initially confine the products to Thailand's exchange.
Thailand is proposing a new crypto ETF framework, beginning with Bitcoin and Ethereum, in a bid to steer more of the ETF value chain to domestic players as the market opens. According to CryptoSlate, the Thai Securities and Exchange Commission opened public comment on Aug. 24 for rules that would cover passive, single-asset funds focused on one of the two cryptocurrencies.
Under the proposal, each ETF would need to maintain an average net exposure of at least 80.0% of net asset value to its selected asset over an accounting year. CryptoSlate also reports that the ETFs would trade only on the Stock Exchange of Thailand, with assets initially held primarily by digital-asset custodians regulated by the Thai SEC.
CryptoSlate notes the plan is not a blanket ban on foreign crypto products. Mutual and private funds can already invest in overseas crypto ETFs under current rules, while the SEC is separately consulting on a framework that could later allow qualified foreign custodians.
The draft also points to initial restrictions on certain alternative products tied to foreign crypto ETFs, including depositary receipts referencing them and some securities-company arrangements for non-institutional and non-ultra-high-net-worth customers. CryptoSlate added that investors and intermediaries would face product-risk education and acknowledgment requirements before trading, and the consultation opened comments due Sept. 20.
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