Thailand has taken a major step toward a regulated market for Bitcoin and Ether exchange-traded funds, or ETFs. The country’s Securities and Exchange Commission (SEC) has released draft rules for crypto ETFs and opened them for public feedback.
The proposal could give investors a new way to gain exposure to Bitcoin and Ethereum through the traditional capital market. Instead of buying crypto through a digital asset platform, investors could get exposure through an ETF listed on the Stock Exchange of Thailand, or SET.
However, the proposal is not the same as an approved ETF launch. The rules are still under review, and the public has until September 20, 2026, to submit comments. The SEC may make changes after it reviews the feedback.
Bitcoin and Ethereum Will Come First
The SEC plans to limit the first group of eligible crypto assets to Bitcoin and Ethereum. These are the two assets that meet the first-stage criteria under the proposed framework.
The regulator says eligible crypto assets must have strong liquidity, broad market acceptance, network security, and suitable investor protection. Based on these factors, Bitcoin and Ethereum will qualify at the start.
This does not mean other cryptocurrencies are banned from the framework forever. The SEC could decide on more eligible assets at a later stage if they meet the required standards.
For now, the focus is clear: Thailand wants to start with the two largest and most established crypto assets before it considers a wider range of digital assets.
The ETF Must Follow a Passive Strategy
The proposed crypto ETFs will use a passive investment structure. Their main goal will be to follow the price of one crypto asset rather than actively buy and sell different digital assets.
Each ETF will focus on a single cryptocurrency. A Bitcoin ETF will focus on Bitcoin, while an Ether ETF will focus on Ethereum.
One of the most important rules is the 80% exposure requirement. The fund must keep average net exposure to its chosen crypto asset at at least 80% of its net asset value, or NAV, over each accounting year.
This rule aims to make sure the ETF remains closely linked to the crypto asset it claims to track. Investors who buy a Bitcoin ETF, for example, should therefore get exposure that remains strongly tied to Bitcoin’s price.
ETFs Could Trade on the Thai Stock Exchange
The proposed crypto ETFs will be listed and traded on the Stock Exchange of Thailand.
This is an important part of the plan because it could place Bitcoin and Ethereum closer to the normal financial system used by investors in Thailand. A regulated ETF structure can offer a familiar route for people who may not want to manage crypto wallets, private keys, or direct transfers of digital assets.
The SEC also wants investors to understand the risks before they trade these products. Crypto prices can move sharply, so the proposed framework includes investor protection and disclosure measures.
The ETF structure does not remove the market risk of Bitcoin or Ethereum. Instead, it creates a regulated investment vehicle through which investors can gain exposure to those assets.
Asset Management Companies Must Be Ready
Thailand’s SEC will also place requirements on the asset management companies that want to create crypto ETFs.
An asset management company, or AMC, must show that it has the right staff, systems, processes, and service providers to operate the fund in a safe and orderly way.
This requirement matters because a crypto ETF has risks that do not exist in the same form with a normal stock or bond fund. The fund must deal with digital assets, custody, security, valuation, and other technical issues.
The SEC therefore wants the companies behind these products to have proper systems before they can launch a crypto ETF.
This could help reduce operational risks and give investors more confidence in the products once they reach the market.
Crypto Custody Will Be a Key Issue
One of the biggest parts of the new proposal is the rule for crypto custody.
Under the revised approach, Thai crypto ETFs will mainly have to use digital asset custodians that fall under SEC supervision in Thailand. This means the crypto held by the funds will not simply sit with an unregulated third party.
The SEC has also made its earlier custody approach more flexible after feedback from the market. A qualified foreign digital asset custodian may be allowed when the SEC considers such use necessary and appropriate.
A foreign custodian would also need supervision from a regulator with proper legal powers. The SEC would need to see suitable rules for investor protection and asset safety before it accepts such a provider.
This change shows that custody remains one of the most important issues for Thailand as it builds its crypto ETF market.
Thai Funds May Also Get More Options
The proposal could affect more than retail investors.
Thailand plans to allow mutual funds and private funds to invest in Thai-domiciled crypto ETFs, subject to existing investment limits. This could give local fund managers another route to access Bitcoin and Ethereum.
At the same time, the SEC does not plan to allow every type of crypto ETF product at the start.
For example, the first phase will restrict alternative products tied to foreign crypto ETFs. The SEC has cited examples such as depositary receipts linked to overseas crypto ETFs and certain arrangements that allow Thai brokerage firms to give some retail clients access to foreign crypto ETFs.
The goal appears to be a clear domestic framework rather than a market full of complex products linked to foreign funds.
Why This Matters for Bitcoin and Ethereum
Thailand’s move could be important for the wider crypto market because ETFs can make digital assets easier to access through traditional finance.
Many investors understand stocks, mutual funds, and ETFs but may not feel comfortable with crypto wallets or private keys. A regulated ETF can remove some of those technical barriers.
The proposal also shows that Thailand sees a place for digital assets within its capital market. The SEC says the framework aims to expand investment choices, improve the ability of local financial businesses, and create more product variety in the Thai capital market.
Still, investors should not treat the proposal as an immediate price catalyst for Bitcoin or Ethereum. The rules are not final, and no new Thai crypto ETF has been approved under this proposal yet.
Public Feedback Will Shape the Final Rules
The SEC opened the latest public consultation on August 24, 2026. The consultation covers both the crypto ETF framework and proposed rules for foreign digital asset custodians used by mutual funds and private funds.
The public feedback period will remain open until September 20, 2026.
After the consultation, the SEC can review the comments and decide whether the draft rules need changes. The final framework could therefore differ from the current proposal.
The April–May 2026 consultation had already produced useful feedback. The SEC said most respondents supported the earlier crypto ETF framework, while comments about custody led to changes in the latest proposal.
Thailand’s Next Chapter for Crypto
Thailand’s proposed Bitcoin and Ether ETF rules mark an important step toward a more formal crypto market.
The plan is simple at its core. Bitcoin and Ethereum would qualify first. Each ETF would track one crypto asset. The fund would keep at least 80% average net exposure to that asset. The ETF would use a passive structure and could trade on the Stock Exchange of Thailand.
At the same time, the SEC wants strong rules for asset managers, custody, investor protection, and disclosures.
The proposal still needs to pass through the regulatory process, so investors should wait for the final rules before treating the plan as a confirmed ETF launch.
If Thailand completes this framework, it could give Bitcoin and Ethereum a stronger place inside the country’s traditional financial system. It could also create a model for other markets that want to offer regulated crypto exposure without asking investors to hold digital assets directly.
For now, the key date is September 20, 2026, when the public consultation ends. What comes after that could determine how soon Thailand moves from a proposal to its first regulated spot Bitcoin and Ether ETFs.
ALSO READ: Coinbase Delists 10 Perpetual Futures: What You Need to Know
