Thailand opens the door to homegrown bitcoin and ether ETFs, starting October 16

Thailand is building its own crypto ETF market. The country's Securities and Exchange Commission issued rules on Thursday that let fund managers list bitcoin and ether ETFs on the Stock Exchange of Thailand, starting October 16, The Block reported.

Bitcoin and ether are the only assets allowed at launch. Each fund has to track the price of its crypto asset and keep average net exposure of at least 80% of net asset value over each accounting year. The coins must be held by custodians licensed by the SEC, and the funds can trade only on the Thai exchange.

There are guardrails for buyers. Investors must acknowledge the risks before they trade, and securities firms cannot lend on margin to buy crypto ETFs. During this first phase, firms also cannot issue depositary receipts tied to foreign crypto ETFs or arrange foreign crypto ETF purchases for clients outside the institutional and ultra-high-net-worth groups.

The biggest change is for Thai funds. Mutual funds and private funds can now buy locally listed crypto ETFs, within their existing investment limits. Until now they could only invest in crypto ETFs listed abroad.

What to watch: which asset managers file first, and whether more coins are added after the first phase.