Key Takeaways
- • CoinShares head of research James Butterfill expects modest initial inflows into Thailand's first crypto ETFs, with tens of millions of US dollars across the first products viewed as a more realistic starting point than billions, according to Cointelegraph.
- • Thailand's rules for Bitcoin (BTC) and Ether (ETH) ETFs to list on the Stock Exchange of Thailand take effect on Friday, allowing retail Thai investors to access locally listed crypto ETFs.
- • Overseas crypto ETF investments through domestic brokers are restricted to institutional and ultra-high-net-worth investors under the new framework.
- • Hong Kong accounts for just 0.42% of assets in global crypto exchange-traded products, a comparison Butterfill cites as a caution for Thailand; global crypto investment products held $172.9 billion in AUM as of late September, per CoinShares.
- • Butterfill named MFC Asset Management and ONE Asset Management as potential issuers to watch, but neither had confirmed launch plans or timing.
Summary
Thailand's first crypto exchange-traded funds may get off to a slow start despite Bangkok's efforts to broaden access to regulated digital asset investments, according to James Butterfill, head of research at digital asset investment firm CoinShares, who spoke to Cointelegraph. Butterfill said he would expect modest inflows initially, with tens of millions of US dollars across the first products a more realistic starting expectation than billions.
The framework takes effect Friday, when rules for Bitcoin and Ether ETFs to list on the Stock Exchange of Thailand begin. The rules allow retail Thai investors to access locally listed crypto ETFs, while restricting overseas crypto ETF investments through domestic brokers to institutional and ultra-high-net-worth investors. Thailand's first crypto funds will still require regulatory approval and the necessary custody and distribution arrangements before trading can begin.
Butterfill pointed to Hong Kong as a cautionary comparison. Hong Kong accounts for just 0.42% of assets in global crypto exchange-traded products (ETPs) despite its status as an international financial hub. Global crypto investment products held $172.9 billion in assets under management, including $733 million in Hong Kong, according to CoinShares data as of late September.
Butterfill argued that existing options may limit demand for new Thai ETFs, since some investors already gain Bitcoin exposure through foreign funds or direct crypto trading. MFC Asset Management, which introduced its Bitcoin ETF Tracker Fund (MBTCETF-UI) in 2024 investing in BlackRock's iShares Bitcoin Trust (IBIT), was identified as a firm to watch, as was ONE Asset Management, which in 2024 became the first Thai asset manager to receive approval for a Bitcoin ETF-linked fund. "Local ETFs therefore need to attract new investors or offer a compelling reason to switch," Butterfill said. He had not confirmed either company's plans for a locally listed crypto ETF or when the first products might trade. Cointelegraph's requests for comment to Thailand's SEC, ONE Asset Management and MFC Asset Management had not been answered by publication time.
The framework takes effect Friday, when rules for Bitcoin and Ether ETFs to list on the Stock Exchange of Thailand begin. The rules allow retail Thai investors to access locally listed crypto ETFs, while restricting overseas crypto ETF investments through domestic brokers to institutional and ultra-high-net-worth investors. Thailand's first crypto funds will still require regulatory approval and the necessary custody and distribution arrangements before trading can begin.
Butterfill pointed to Hong Kong as a cautionary comparison. Hong Kong accounts for just 0.42% of assets in global crypto exchange-traded products (ETPs) despite its status as an international financial hub. Global crypto investment products held $172.9 billion in assets under management, including $733 million in Hong Kong, according to CoinShares data as of late September.
Butterfill argued that existing options may limit demand for new Thai ETFs, since some investors already gain Bitcoin exposure through foreign funds or direct crypto trading. MFC Asset Management, which introduced its Bitcoin ETF Tracker Fund (MBTCETF-UI) in 2024 investing in BlackRock's iShares Bitcoin Trust (IBIT), was identified as a firm to watch, as was ONE Asset Management, which in 2024 became the first Thai asset manager to receive approval for a Bitcoin ETF-linked fund. "Local ETFs therefore need to attract new investors or offer a compelling reason to switch," Butterfill said. He had not confirmed either company's plans for a locally listed crypto ETF or when the first products might trade. Cointelegraph's requests for comment to Thailand's SEC, ONE Asset Management and MFC Asset Management had not been answered by publication time.
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