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On August 24-25, 2026, the Thai SEC published draft rules for spot Bitcoin and Ethereum ETFs. The public comment period runs until September 20. After that, the rules could be finalised and the first Thai-listed crypto ETFs could launch within months.
Most coverage of this development focused on the headline — Thailand is getting crypto ETFs. Less attention went to the specifics of the draft rules, which contain details that will directly affect how these products work for investors. Here’s what the framework actually says.
The 80% NAV Rule Explained
The most cited requirement is that each ETF must maintain at least 80% of its net asset value in exposure to the underlying asset — either Bitcoin or Ethereum — measured on an annual average basis. That 80% figure sounds straightforward, but the “annual average” measurement matters.
An ETF that drops below 80% Bitcoin exposure temporarily — perhaps to manage liquidity during a redemption wave — doesn’t immediately violate the rule. It must maintain the 80% threshold on average across the accounting year. This gives fund managers some operational flexibility but creates a tracking risk for investors: during periods when the fund is temporarily underexposed, your ETF may not fully reflect spot Bitcoin price movements.
The remaining up to 20% of NAV can be held in cash, short-term government securities, or other liquid instruments. This is a standard buffer for ETF operations — managing redemptions, paying fees, covering transaction costs.
Only Bitcoin and Ethereum, Initially
The draft rules limit eligible underlying assets to Bitcoin and Ethereum for the initial phase. No Solana ETF, no XRP ETF, no thematic multi-crypto basket. The SEC is starting with the two assets that have the longest track record, deepest liquidity, and established regulatory status in other jurisdictions (particularly the US, where Bitcoin and Ether are both explicitly recognised as commodities under the Clarity Act framework).
This means Thai investors who want crypto ETF exposure in THB will have to choose between a Bitcoin ETF and an Ethereum ETF — or hold both. Altcoin exposure through Thai-listed ETFs isn’t coming in the near term.
Custody: Domestic First, Foreign as Exception
The draft rules specify that crypto held by Thai ETFs must be primarily custodied with domestic digital asset custodians — firms licensed under the Thai SEC’s digital asset framework. Foreign custodians are permitted “when necessary and appropriate,” but they must meet their home jurisdiction’s requirements plus Thai SEC standards.
This domestic-custody preference has implications. Thai digital asset custodians are fewer and less established than major global custodians like Coinbase Custody or BitGo. The requirement may limit the choice of ETF managers initially and could affect costs — domestic custody in a less competitive market tends to cost more than global alternatives.
On the positive side, domestic custody means investor assets are under Thai regulatory jurisdiction. In the event of a custodian failure, Thai bankruptcy law applies rather than a foreign framework — which matters for retail investor protection.
Which Asset Managers Can Launch These ETFs
The rules limit management to licensed asset management companies — the same firms that currently manage Thai mutual funds and SET-listed ETFs. This excludes digital asset exchanges (Bitkub, Gulf Binance) from launching ETFs directly. Established Thai asset managers, including those affiliated with major banks like KBank, SCB, and Krungsri, are the likely first movers.
How to Submit a Comment Before September 20
The Thai SEC accepts public comments on regulatory consultations through its official website. For this draft, the consultation is open to all stakeholders — individual investors, institutional investors, fund managers, and general public. Submitting a comment gives you a direct channel to flag concerns or request clarifications on the 80% rule, custody requirements, or eligible asset scope.
Points worth commenting on if you’re an active investor:
- Clarification on how the annual average for 80% compliance is calculated (calendar year or rolling 12 months?)
- Whether the 20% non-crypto portion can include foreign currency cash during currency hedging operations
- Timeline for expanding eligible assets beyond Bitcoin and Ethereum
- Treatment of staking rewards on Ethereum held in ETF custody
What This Means for Thai Investors
The practical impact of Thai crypto ETFs on your portfolio depends on whether you currently have crypto exposure and through what channel:
If you currently hold crypto directly on Bitkub or Gulf Binance: Thai ETFs will offer an alternative with different characteristics — no private key management, potential dividend reinvestment if staking rewards are passed through, and SET-standard investor protections. The direct holding route gives you full custody control but less regulatory protection.
If you currently hold US-listed crypto ETFs through an international brokerage: Thai-listed ETFs will offer the same economic exposure in THB without the currency risk. Whether the THB or USD version is better depends on your view of USD/THB.
If you have no crypto exposure: Thai crypto ETFs will be the most accessible and lowest-friction entry point when they launch — buying through your existing Thai brokerage account the same way you’d buy a SET50 ETF.
The Bottom Line
September 20 is the deadline for public comment. The 80% NAV rule, domestic custody preference, and Bitcoin/Ethereum-only scope are the three structural features that will shape how these products perform relative to spot prices. Understanding them now means you’ll know exactly what you’re buying when these ETFs launch — rather than discovering the tracking characteristics after you’ve invested.
