The Securities and Exchange Commission (SEC) has permitted asset management firms to launch private funds for investing in spot Bitcoin exchange-traded funds (ETFs) but only institutional investors and ultra-high-net-worth investors will be able to invest in such funds.
The SEC board last week agreed that asset management firms can manage private funds that invest in spot Bitcoin ETFs on US exchanges, SEC secretary-general Pornanong Budsaratragoon said on Monday.
Under the SEC Act, securities companies can provide the trading of assets that are classified as securities assets. After the US SEC approved trading of spot Bitcoin ETFs, spot Bitcoin ETFs became defined as securities rather than digital assets so Thai securities firms can now invest in them.
However, only institutional investors and ultra-high-net-worth investors will be able to invest in spot Bitcoin ETFs.
"Asset management firms asked the SEC for them to have exposure in digital assets, especially Bitcoin and spot Bitcoin ETFs, but we need to consider carefully whether to allow asset management firms to invest in digital assets directly due to the high risk," said Ms Pornanong.
Moreover, the rules and regulations that govern investments of asset management firms do not cover investments in digital asset ETFs.
The SEC thus needed to adjust the rules and regulations to unlock such investments so asset management firms and securities firms' customers can invest in spot Bitcoin ETFs through private funds, but the investments are limited to institutional and ultra-high-net-worth investors, she said.
The SEC's approval comes at a time when Bitcoin prices are hovering around an all-time high, making it a good time to unlock investment for Thai investors. After recent eases in the price, Bitcoin was traded at more than US$71,500 per coin on Monday afternoon.
Ms Pornanong also said the SEC board approved measures to upgrade the stock market supervisory and new listing rules proposed by the Stock Exchange of Thailand (SET) in a move to strengthen investor confidence in the Thai market and long-term development of the bourse.
The measures include the supervision of short selling transactions, naked short, program trading, high frequency trading and curbing stock price fluctuation.