Thailand is set to launch its first Bitcoin exchange-traded fund (ETF), according to a report by the Bangkok Post. The ETF, approved by the Thai Securities and Exchange Commission (SEC), will be managed by local firm One Asset Management (ONEAM).
Unlike traditional ETFs accessible to all investors, this Bitcoin ETF caters exclusively to high-net-worth individuals and institutions. Named the ONE Bitcoin ETF Fund of Funds Unhedged (ONE-BTCETFOF-UI), it will be distributed later this month.
This ETF takes a unique approach by investing in a basket of 11 leading global Bitcoin funds. This strategy aims to provide investors with greater liquidity and security compared to directly holding Bitcoin. The fund also adheres to international standards for cryptocurrency storage and has been reviewed by regulators in the US and Hong Kong.
The approval comes as Bitcoin ETFs gain traction globally. The US and Hong Kong recently approved similar products, and Australia launched its first such ETF earlier this year.
While Bitcoin offers high potential returns (averaging 124% annually over the past 11 years), it’s also highly volatile (averaging 83% annual volatility). ONEAM acknowledges this risk and recommends limiting Bitcoin exposure to 5% of a portfolio through their ETF. Their analysis suggests this strategy could achieve a balanced return with reduced risk.
