Thailand limits crypto ETFs to domestic trading and custody

Thailand’s Securities and Exchange Commission has proposed rules requiring Bitcoin and Ethereum exchange-traded funds to list on the Stock Exchange of Thailand and to keep their crypto holdings primarily with custodians regulated in Thailand. The draft would limit initial domestic ETF listings to passive, single-asset funds that maintain an average net exposure of at least 80% to Bitcoin or Ethereum over an accounting year.

The SEC opened public consultation on Aug. 24 and is taking comments through Sept. 20. The regulator expects related rules to take effect later in 2026; no launch date for onshore ETFs has been set. The draft channels early fund-management, trading and custody roles toward Thai firms while preserving some routes for investors to access foreign crypto products under existing frameworks.

Under the proposal, domestically domiciled Bitcoin and Ethereum ETFs would be allowed to list only on the Stock Exchange of Thailand. Custody of underlying digital assets would initially need to be provided mainly by digital-asset custodians licensed by the Thai SEC. Funds would be required to operate passively and to focus on a single cryptocurrency.

The draft would restrict certain alternative products tied to foreign crypto ETFs, including depositary receipts that reference overseas ETFs and specific securities-company arrangements for retail customers outside institutional and ultra-high-net-worth categories. Mutual funds and private funds may continue to invest in overseas crypto ETFs under current rules. The SEC is consulting separately on a mechanism that could permit qualified foreign custodians in later phases.

The SEC’s public registry lists licensed custodial wallet providers such as Rakkar Digital and Orbix Custodian, and registered digital-asset fund managers including Soberin, Orbix Invest and Merkle. Thailand has 24 licensed mutual-fund management companies that could compete for mandates if the ETF framework is finalized. The consultation paper does not identify likely applicants or custodian mandates.

Investor protections in the draft include mandatory product-risk education and a requirement that investors acknowledge specific risks before trading. Intermediaries would be required to assess customers’ diversification needs, risk tolerance and financial capacity before recommending or facilitating trades in the proposed products.

Spot crypto ETFs in the United States have drawn more than $60 billion in net inflows since their launch, with roughly $54 billion in Bitcoin ETFs and about $12 billion in Ethereum products. The Thai draft would concentrate early ETF activity within Thai-regulated institutions while keeping limited existing access paths to offshore products.

The consultation period allows industry feedback and potential adjustments to product design, custody arrangements and foreign custodian access before rules are finalized later in 2026.