Thailand’s cryptocurrency industry took a significant step forward as the country’s regulator, the Securities and Exchange Commission (SEC), granted approval for the launch of the first Bitcoin exchange-traded fund (ETF) in cash. This groundbreaking development follows the SEC’s earlier measures in March, which opened up opportunities for institutions and ultra-high net worth individuals to invest in US-listed Bitcoin products through local private funds.
According to a recent report in the Bangkok Post, the Thai regulator has given its endorsement to One Asset Management (ONEAM) to launch the country’s first spot Bitcoin ETF. The distribution of the Thailand Bitcoin ETF is expected to take place between May 31st and June 6th. However, this product is only available to wealthy and institutional investors.
Pote Harinasuta, the CEO of ONEAM, emphasized the diversification benefits of digital assets, stating that they have low correlation with other financial assets. He believes they are a suitable option for investors looking to mitigate investment risks.
Meanwhile, MFC Asset Management is still waiting for potential approval from the industry regulator in Thailand for its spot Bitcoin ETF.
So, what exactly is a Bitcoin ETF? Dynamic investors who want to diversify their portfolios at a lower cost and with tax advantages often turn to Exchange Traded Funds (ETFs). An ETF is a collection of assets, and its shares are traded on stock markets. ETFs offer the combined benefits of mutual funds, stocks, and bonds.
Unlike traditional mutual funds, ETF shares are traded throughout the day, with their prices fluctuating based on market supply and demand. Similarly, Bitcoin ETFs track the value of BTC and trade on conventional exchanges, rather than cryptocurrency exchanges.
It is important to note that the views expressed in this article, including those of the author and individuals mentioned, are for informational purposes only and should not be considered financial or investment advice. Investing or trading cryptocurrencies carries the risk of financial loss.
In other news, a survey reveals that long-term Bitcoin holders have started reaccumulating their positions for the first time in five months. Additionally, an expert predicts that the price of Bitcoin could reach $82,000 once a specific pattern is achieved.