Thailand has become the latest country whose government has decided to approve the release of a spot Bitcoin ETF.
The Thai Securities and Exchange Commission has permitted One Asset Management (ONEAM) to create a BTC-based derivative called ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI). Trading of the ETF shares is set to launch by June 6, but due to the high investment risk, only institutional investors and wealthy individuals will be able to purchase them.
Digital assets represent an alternative asset class, whose price dynamics are weakly correlated with the fluctuations of other financial assets. They can be used to diversify investment risks, said ONEAM director Pote Harinasuta.
Harinasuta noted the growing demand for Bitcoin in Thailand amid the rising popularity of cryptocurrency. He attributed this to the high returns on BTC investments, averaging 124% per year based on statistics from the past 11 years.
Nevertheless, ONEAM staff advise investing only 5% of financial resources into Bitcoin, as the coin is considered a high-risk investment tool due to significant price volatility, averaging 83% per year over the past 11 years.
