Thailand Unveils First Bitcoin ETF for Wealthy Investors

• The Thai Securities and Exchange Commission (SEC) has granted permission to One Asset Management to launch Thailand’s pioneering Bitcoin exchange-traded fund (ETF).
• This ETF is structured to cater solely to high-net-worth individuals and institutional investors, investing in 11 prominent international funds.
• “Digital assets serve as an alternative asset class with minimal correlation to conventional financial instruments,” remarked Pote Harinasuta, CEO of ONEAM.

Thailand’s First Bitcoin ETF provides a diversified investment approach for wealthy and institutional investors, focusing on risk management and international standards compliance.

A New Era of Diversified Investment

The ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI) is set to be available from May 31 to June 6. However, unlike traditional ETFs, this fund is specifically designed for affluent and institutional investors.

“Digital assets remain an uncorrelated asset class suitable for diversifying investment risks,” stated Pote Harinasuta, CEO of ONEAM.

By investing in 11 leading global funds, ONEAM’s Bitcoin ETF delivers a unique proposition. This tactic ensures liquidity and safety for investors while adhering to international standards for storing digital assets. The fund has also undergone stringent reviews by regulatory bodies in both the United States and Hong Kong.

Meanwhile, MFC Asset Management is awaiting SEC approval for its own spot Bitcoin ETF that similarly targets high-net-worth individuals and institutional clients.

Globally, spot Bitcoin ETFs are gaining momentum. Earlier this year, the U.S. SEC approved the first set of such products, followed by Hong Kong’s Securities and Futures Commission, which allowed ETFs for both Bitcoin and Ethereum. Australia recently joined the trend too.

Risk Management with Bitcoin ETFs

Over the past eleven years, Bitcoin has garnered an average annual return of 124%, accompanied by high volatility, with an average annual volatility of 83%.

Pote Harinasuta emphasized that while cryptocurrency remains highly volatile, its integration with traditional assets can improve expected returns and enhance the portfolio’s risk-adjusted performance.

ONEAM advises that only 5% of an investor’s portfolio should be allocated to BTC through the ETF. Their analysis points to an annual return of 8.90% with potentially improved risk-adjusted returns for the overall portfolio.

“Direct investment in Bitcoin via various platforms poses risks, including data loss or theft of digital assets through online systems,” said Mr. Harinasuta.

The ONE Bitcoin ETF mitigates these security concerns by offering custodian-level security measures akin to those used by institutional investors, employing offline storage to reduce the risk of online attacks.

Conclusion

The launch of Thailand’s first Bitcoin ETF signifies a milestone for the nation, providing a diversified approach for wealthy and institutional investors. By adhering to international standards and employing robust risk management strategies, ONEAM sets a new benchmark in Bitcoin investments. Investors can look forward to a balanced portfolio with improved risk-adjusted returns while navigating the volatile crypto market more securely.