Thailand crypto ETFs may see modest initial inflows under new listing rules

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Thailand crypto ETF listing

Highlights

Thailand's new crypto ETF rules expand domestic access for retail investors but initially expect inflows in the tens of millions rather than billions.
Global crypto investment products hold $172.9 billion AUM, with Hong Kong ETFs representing only $733 million, seen as a benchmark for Thailand's likely slow start.
Existing Bitcoin exposure options, including MFC’s MBTCETF-UI and ONE’s ETF-linked fund, may curb immediate demand for newly listed local crypto ETFs.

New listing framework and launch outlook

As reported by Cointelegraph, Thailand’s first locally listed crypto ETFs still require regulatory approval as well as custody and distribution arrangements before trading can begin.

James Butterfill, head of research at CoinShares, says the new rules expand access for retail Thai investors to domestic Bitcoin and Ether ETFs, while keeping overseas crypto ETF investments through domestic brokers limited to institutional and ultra-high-net-worth investors. He says that setup creates a regulated entry point for local demand, but does not guarantee rapid asset gathering in the early stages.

Butterfill says a modest start is more likely, with tens of millions of U.S. dollars across the first products a more realistic expectation than billion-dollar inflows. He adds that the timing of the first launches remains uncertain because no specific local ETF plans have been confirmed.

Existing products may limit early demand

Butterfill points to Hong Kong as a cautionary benchmark for Thailand, saying even a major financial center can struggle to build substantial crypto ETF inflows. According to CoinShares data from late September, global crypto investment products hold $172.9 billion in assets under management, with Hong Kong accounting for $733 million, or about 0.42% of global crypto exchange-traded product assets.

He also says Thailand’s existing investment options could reduce urgency for new local listings because some investors already gain Bitcoin exposure through foreign funds or direct crypto trading. MFC Asset Management launched its Bitcoin ETF Tracker Fund, MBTCETF-UI, in 2024, investing in BlackRock’s iShares Bitcoin Trust, IBIT, while ONE Asset Management became the first Thai asset manager in 2024 to receive approval for a Bitcoin ETF-linked fund.

Butterfill identifies MFC and ONE as firms to watch for possible local ETF issuance, but says he has not confirmed whether either plans to launch a domestic crypto ETF or when such products could start trading. Cointelegraph says it contacted Thailand’s SEC, ONE Asset Management and MFC Asset Management and had not received responses by publication time.

Our earlier article on U.S. exchanges moving to 23/5 trading outlined plans by major venues to extend equity-market hours to nearly round-the-clock access. We noted that while the shift is meant to meet global demand and pull activity onto regulated exchanges, it also raises risks around thin overnight liquidity, wider spreads, and tougher market surveillance.

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