[NEWS] Securities and Exchange Commission of Thailand approves Thailand's first Bitcoin spot ETF investment fund

The Thai Securities and Exchange Commission (SEC) has approved Thailand's first Bitcoin (BTC) spot ETF, which was applied for by Thailand-based One Asset Management. Local media Bangkok Post reported on the 4th.

The Bitcoin spot ETF "One Bitcoin ETF (ONE-BTCETFOF-UI)" offered by One Asset Management is a product for wealthy and institutional investors, and individual investors cannot invest in it.

To ensure liquidity and safety, the ETF plans to invest in 11 of the world's leading funds and store Bitcoin according to international standards, and is also undergoing review by international regulatory agencies in the United States and Hong Kong.

MFC Asset Management has also applied for approval of a Bitcoin spot ETF limited to wealthy and institutional investors, but the Thai SEC has not yet announced the approval.

Pote Harinasuta, CEO of One Asset Management, said, "Digital assets are alternative assets with low correlation to other financial assets. They are suitable for investors to diversify their investment risks."

Since the SEC approved a Bitcoin spot ETF on January 11, the Bitcoin spot ETF is gaining international recognition, especially from overseas regulators.

In April, the Hong Kong Securities and Futures Commission approved an ETF that invests in both Bitcoin and Ethereum (ETH). Pote said, "Bitcoin's market capitalization is $1.4 trillion, while gold's market capitalization is currently $14 trillion. Bitcoin's supply is limited to 21 million, but demand is growing as it becomes more popular. I see high growth potential for Bitcoin."

Over the past 11 years, Bitcoin's average return has been 124% per year, with an average annual volatility of 83%. Pote added, "Investing in Bitcoin can generate high returns, but it is also highly volatile."

One Asset Management recommends that investors allocate 5% of their portfolio to Bitcoin to earn an 8.90% annual return.

This portfolio has a Sharpe ratio to risk of 0.71% and a maximum drawdown of minus 22.4%. Meanwhile, a portfolio without Bitcoin would earn an annual return of 5.80%, with a Sharpe ratio of 0.48% and a maximum drawdown of minus 20.4%, Pote explained.

This shows that holding Bitcoin improves expected returns and Sharpe ratios even if overall volatility increases slightly. Pote also said that a key aspect of a Bitcoin spot ETF is the security of coin storage.

He added, "Investing in Bitcoin directly through various platforms is risky. In the past, there have been problems with data loss and theft of digital assets via online systems."

When investing through an ETF, unit holder data and coins are distributed through custodians who provide the same standards used by institutional investors, and coins are stored offline, ensuring a very high level of safety, he continued.

Reference: Report
Image: Shutterstock

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