Thailand SEC Seeks Feedback on Bitcoin and Ether ETF Rules | Crypto ETF News
Crypto ETF news: Thailand SEC Seeks Feedback on Bitcoin and Ether ETF Rules. This update explains what changed, why it matters for institutional adoption, market flows, and investor sentiment, and what the crypto market should watch next.
Institutional And ETF Update
Thailand’s Securities and Exchange Commission (SEC) has advanced its framework for locally listed spot Bitcoin and Ether exchange-traded funds (ETFs) from proposed principles to draft regulations while revising its approach to foreign digital asset custodians.The regulator said Monday it is seeking feedback on two consultation papers. One contains draft regulations for Thai crypto ETFs, while the other proposes principles governing the qualifications of foreign digital asset custodians engaged by mutual and private funds investing in digital assets.During the initial stage, asset managers could establish passive ETFs tracking Bitcoin (BTC) or Ether (ETH), the only two eligible crypto assets.The draft regulations follow an April consultation on the framework’s broader principles. The SEC said most respondents supported the framework but provided feedback on custody arrangements, prompting the regulator to revise its proposed approach.The framework forms part of Thailand’s ambition to become a global digital asset hub for institutions.Bitcoin and Ether ETFs would trade on Thai stock exchangeUnder the proposed rules, Bitcoin and Ether ETFs would trade exclusively on the Stock Exchange of Thailand (SET). Each ETF would track a single crypto asset and would need to maintain average net exposure of at least 80% of its net asset value to that asset over each accounting year.Related: Bitcoin ETF inflows hit $1.9B in strongest week since October 2025The proposed rules would also allow mutual funds and private funds to invest in Thai-domiciled crypto ETFs, alongside foreign crypto ETFs in which they are already permitted to invest, subject to existing investment limits.During the initial phase, however, the regulator would not allow alternative products tied to foreign crypto ETFs, including depositary receipts tracking them.Thailand revises crypto custody proposalThe revised approach would retain onshore digital asset custodians as the primary providers for crypto ETFs during the initial phase. “Under the revised approach, crypto ETFs will continue to be primarily required to use onshore DA [digital asset] custodians, while the SEC may permit the use of qualified foreign DA custodians when necessary and appropriate in light of prevailing circumstances,” the SEC said.Under the separate custodian proposal, foreign providers serving mutual and private funds investing in digital assets would need to be supervised by a regulatory authority with legal powers. They would also have to operate under regulatory and investor asset protection standards that the Thai SEC considers adequate.The SEC will accept public comments on both consultation papers until Sept. 20.Magazine: Korean bank taps Ripple for payments, Pakistan opens crypto licensing: Asia Express
Why This ETF News Matters
First, this development may affect institutional demand, exchange flows, market liquidity, and broader investor confidence. In addition, it may influence custody trends, fund positioning, and future crypto product approvals. As a result, traders and investors should watch the next moves closely.
What To Watch Next
Watch for filing updates, approval decisions, inflow and outflow data, custody changes, and asset manager commentary. In particular, any new developments involving BlackRock, Grayscale, Fidelity, or major spot ETF products could directly affect the broader crypto market.
