Thailand's Crypto ETF Expected to Attract Tens of Millions of Dollars in Initial Inflows

Thailand's listing rules for exchange-traded funds (ETFs) focused on Bitcoin and Ethereum will take effect on Friday. James Butterfill, head of research at digital asset investment firm CoinShares, stated that the initial inflows for the first products are expected to be in the tens of millions of dollars, and reaching billions in expectations is unrealistic. After the new regulations come into effect, Thai retail investors will be able to gain exposure to these assets through locally listed crypto ETFs, while investments in overseas crypto ETFs through domestic brokers will be limited to institutional investors and ultra-high-net-worth individuals. The first batch of Thai crypto funds still needs to obtain regulatory approval and complete custody and distribution arrangements before trading can commence. Butterfill mentioned that as of the end of September, the total assets under management for global crypto exchange-traded products (ETPs) stood at $172.9 billion, with Hong Kong accounting for $733 million, or 0.42%. Some investors have already gained exposure to Bitcoin through overseas funds or direct trading, which may limit the demand for local ETFs. MFC Asset Management plans to launch the Bitcoin ETF Tracker Fund (MBTCETF-UI) in 2024, which will invest in BlackRock's iShares Bitcoin Trust (IBIT); ONE Asset Management will become the first Thai asset management company to be approved for a Bitcoin ETF-related fund in the same year.

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