The Securities and Exchange Commission (SEC) of Thailand has given its endorsement to One Asset Management (ONEAM) as the first company to launch a spot Bitcoin exchange-traded fund (ETF) in the country.
The newly approved fund, named ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI), is set to be distributed between 31 May 2024 and 6 June 2024, according to a report from Bangkok Post.
It will be limited to wealthy and institutional investors and carries an investment risk level of eight, indicating its potential for volatility.
ONEAM’s Bitcoin ETF to Invest in 11 Major Funds
ONEAM’s fund follows a policy of investing in 11 prominent global funds to ensure liquidity and safety, per the report.
Furthermore, the fund adheres to international standards for storing coins and has undergone reviews by regulatory agencies in the United States and Hong Kong.
While ONEAM takes the lead in launching a Bitcoin ETF, Thailand’s fund management firm – MFC Asset Management – is still awaiting approval from the SEC for its own Bitcoin ETF, which would also be exclusively available to wealthy and institutional investors.
ONEAM advised investors to allocate only 5% of their portfolio to Bitcoin, expecting an annual return of 8.90%. The allocation is expected to help improve the expected return and Sharpe ratio, a measure of risk-adjusted returns, although it slightly increases overall portfolio volatility.
🇹🇭 #Thailand is set to launch its first #BitcoinETF. The new ETFs, managed by One Asset Management, will be accessible only to institutional and major investors.https://t.co/jrBwiWi8Hk
— GN Crypto (@GNcrypto_news) June 4, 2024
Bitcoin ETFs are gaining recognition worldwide, especially after the US SEC approved funds that directly invest in spot Bitcoin through ETFs earlier this year.
In April 2024, Hong Kong’s Securities and Futures Commission also allowed ETF investing in both Bitcoin and Ethereum, becoming the first in Asia to do so.
One notable advantage of Bitcoin ETFs is the enhanced security they offer for coin storage.
Investing directly in Bitcoin through various platforms carries risks such as data loss or theft of digital assets. However, when investing through ETFs, unitholders’ data and coins are distributed through custodians who follow institutional-grade standards. This means that coins are stored offline, providing a highly secure environment.
While Bitcoin has delivered impressive returns over the past 11 years, averaging 124% per year, it is important to acknowledge its high volatility, with an average annual volatility of 83%.
Bitcoin ETFs in the US See 15 Consecutive Days of Inflows
In the US, spot Bitcoin ETFs have seen 15 consecutive days of net inflows, attracting $105 million on the latest trading day.
Bitcoin ETFs have emerged as one of the most successful categories of ETFs, amassing a total of $58.5 billion in assets.
EXPLORE: What are Bitcoin ETFs? A Beginner’s Guide
The sustained net inflows into Bitcoin spot ETFs come as Bitcoin briefly surpassed the $70,000 mark on Monday, marking the first time in a week that it reached such heights.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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