The recently approved Bitcoin Spot ETFs are driving the BTC price up. We arrived in unchartered territory with new ATHs. It’s simple math, every day, there are 900 BTC mined. After the halving, this will be down to 450 BTC per day. At the same time. BlackRock and Fidelity are buying 9000 BTC per day. These are only 2 out of the 11 ETF providers. So, a supply shock is in the making.
But did you know that these BTC spot ETFs are also available to non-US residents? Thailand now allowed private funds to invest in the BTC spot ETFs. Let’s take a closer look at this.
The Thai SEC Amends Rules for Trading in US BTC Spot ETFs
The Thai SEC amended their rules. This gives more leeway to Thai asset management firms and ‘ultra-high-net-worth investors’. They can now invest in US BTC spot ETFs.
According to the Bangkok Post, they can now use their private funds to invest in the US BTC spot ETFs. The ETFs are exchange-traded funds. In other words, investors don’t need to hold BTC themselves. So, they don’t need a crypto wallet.
Thailand allows asset firms to access spot bitcoin ETFs for professional investors: report https://t.co/ov1CkD83cP
— The Block (@TheBlock__) March 12, 2024
However, the firm that offers these spot ETFs, has Bitcoin as collateral. So, if you buy, for example, for $70,000 USD a BTC spot ETF, you don’t actually own the BTC. The firm that offers the spot ETF, holds the actual BTC. You own now a part of the BTC spot ETF funds that they offer.
The Thai SEC secretary-general Pornanong Budsaratragoon confirmed this last Monday. However, as already mentioned, there are restrictions on who can use this option. Furthermore, she also explained which amendment the Thai SEC made. Investing in digital asset ETFs was not covered by Thai law. That’s where the amendment came into place, to allow this now.
The Position of Thai Retail Investors
The current approval, by the Thai SEC, excludes the Thai retail investors. This seems to be a trend in Thailand. There are many restrictions for the crypto space in Thailand. For example, since March 2022, it’s not allowed to pay with digital assets.
On the other hand, Thailand also tries to be more crypto-friendly. For example, in February, Thailand exempted VAT for trading digital assets. The Bangkok Post quoted the secretary to the Finance Minister, Paopoom Rojanasakul. He said: “The ministry wants to promote digital assets as a new alternative tool for fundraising”.
Conclusion
The Thai SEC offers new trading options. It’s now possible to trade US BTC spot ETFs. However, only Thai asset management firms and ‘ultra-high-net-worth investors’ can take part. As a result, the Thai SEC bypasses Thai retail investors. Thailand is trying to find its way into the digital asset landscape.
Disclaimer
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