Thailand has now joined the United States, Hong Kong, and Australia in the race for Bitcoin accumulation through regulated channels.
The Thailand Securities and Exchange Commission (SEC) has approved the first spot Bitcoin exchange-traded fund (ETF) from One Asset Management (ONEAM). The Thai SEC has, however, approved the ONE Bitcoin ETF fund under the condition that it will only be available to wealthy and institutional investors.
According to the Bangkok Post, the ONE Bitcoin ETF fund intends to invest in 11 leading global funds to aid in liquidity and safety. Moreover, more investors are adopting spot Bitcoin ETFs in place of on-chain products due to security risks and liquidity issues.
“Digital assets are an alternative asset that have low correlation with other financial assets. They are suitable to help investors diversify investment risks. Although the supply of Bitcoin is limited at 21 million, demand is rising as it gains popularity. We see high growth potential for Bitcoin,” Pote Harinasuta, chief executive officer of One Asset Management, noted.
The Thai SEC is yet to issue a green light for the listing and trading of the spot Bitcoin ETF applied by MFC Asset Management. With the growing demand for Bitcoin among institutional investors, the Thai SEC will be compelled to approve the rest of the applicants in the near term.
Thailand Follows Global Trend in Spot Bitcoin ETF Approval
The approval of the first spot Bitcoin ETF in Thailand has followed similar steps in the United States, Hong Kong, and Australia. As Coinspeaker reported, the Australian market debuted its first spot Bitcoin ETF from Monochrome on Tuesday.
Meanwhile, the United States-based spot Bitcoin ETF has accumulated nearly $60 billion in total assets, with a total traded value of more than $1.7 billion. More institutional investors in the United States led by retirement fund managers are widening their exposure to Bitcoin through the recently approved spot ETF.
In Hong Kong, the seven spot Bitcoin ETF issuers have accumulated around $1.09 billion in total net assets with a total of $2.06 million in traded volume. More countries are expected to follow in the same direction as the demand for digital assets gradually grows with clearer regulations.
Market Picture
The continued adoption of Bitcoin by institutional investors has helped the underlying value rally more than 72 percent since the beginning of the year. Bitcoin price against the US dollar has been attempting to rally beyond $72k in the past few weeks after reaching its all-time high (ATH) above $73k earlier this year.
The ongoing macro crypto bull market has significant upside in the coming months akin to the 2017 cycle. Moreover, more than one month has passed since the fourth Bitcoin halving happened. With global debts at record highs amid high fiat currency inflation, the cryptocurrency industry is slated to rally further ahead.
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