Another Country Will See Its First Local Bitcoin ETF: Report

According to the Bangkok Post, Thailand’s Securities and Exchange Commission (SEC) has given approval to One Asset Management, a local company, to launch Thailand’s first Bitcoin exchange-traded fund (ETF).

This ETF is available exclusively to wealthy and institutional investors and follows an investment policy in 11 leading global funds.

A diversified approach

The ONE Bitcoin ETF Fund of Unhedged and Non-Retail Investors Fund (ONE-BTCETFOF-UI) will be distributed between May 31st and June 6th. However, unlike traditional ETFs, this fund is exclusively available to wealthy and institutional investors.

“Digital assets are an alternative asset class with little correlation to traditional financial instruments,” said Pote Harinasuta, CEO of ONEAM. “They are suitable to help investors diversify investment risks,” he added.

ONEAM’s Bitcoin ETF takes a unique approach by investing in 11 leading global funds. This strategy ensures liquidity and security for investors. The fund adheres to international standards for storing digital assets and has also undergone rigorous reviews by regulatory agencies in both the United States and Hong Kong.

Meanwhile, while ONEAM celebrates its achievement, MFC Asset Management awaits SEC approval for its own Bitcoin ETF. Similar to ONEAM’s offering, MFC’s ETF will also cater exclusively to high net worth individuals and institutional clients.

Spot Bitcoin ETFs are gaining traction globally, with the US SEC leading the way earlier this year by approving the first batch in the country. In April, Hong Kong’s Securities and Futures Commission followed suit, allowing the establishment of ETFs that include both Bitcoin and Ethereum. More recently, this product saw the light in Australia.

Risk management strategies

Over the past 11 years, bitcoin has given an average annual return of 124%. However, this comes with high volatility, with BTC’s annual average volatility at 83%.

Pote Harinasuta emphasized that while cryptocurrency remains highly volatile, integrating it with other traditional assets can improve expected returns while reducing risk-adjusted return.

ONEAM recognizes this risk and has advised investors to allocate only 5% of their portfolio to BTC through the ETF. Their analysis suggests that this strategy could achieve an annual return of 8.90% while potentially improving the risk-adjusted return of the overall portfolio.

“Investing in Bitcoin directly through various platforms contains risks, with past problems such as data loss or digital assets being stolen through the online system,” said Mr. you can

The ONE Bitcoin ETF aims to address this security issue by providing investors with custodian-level security practices similar to those used by institutional investors. These custodians use offline storage for BTC, minimizing the risk of online attacks.

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