In a significant step towards the mainstream acceptance of cryptocurrencies, Thailand’s Securities and Exchange Commission (SEC) has approved the launch of the nation’s inaugural Bitcoin exchange-traded fund (ETF). This milestone represents a crucial development for both the cryptocurrency sector and the broader investment landscape in Thailand.
One Asset Management (ONEAM) has taken the lead in this initiative, receiving the green light to offer the first Bitcoin ETF to high-net-worth and institutional investors. The fund, named ONE-BTCETFOF-UI, is set to be available from May 31 to June 6, providing investors with an opportunity to diversify their portfolios with digital assets.
**Bitcoin’s Investment Potential**
Pote Harinasuta, CEO of ONEAM, highlighted the strategic reasoning behind introducing this investment vehicle. He noted that digital assets like Bitcoin present a unique chance for portfolio diversification. Harinasuta explained,
“Digital assets are an alternative asset class with low correlation to other financial assets, making them suitable for diversifying investment risks. Despite Bitcoin’s limited supply of 21 million, its demand is increasing as it gains popularity. We foresee significant growth potential for Bitcoin.”
Bitcoin’s appeal lies not only in its potential for substantial returns but also in its inherent volatility, which offers both opportunities and challenges for investors. Bitcoin has shown an impressive average annual return of 124%, though it comes with a volatility rate of 83%. To mitigate the associated risks, ONEAM advises allocating only about 5% of portfolios to Bitcoin, with an expected annual return of approximately 8.9%.
The approval of Thailand’s first Bitcoin ETF is part of a broader global trend towards the acceptance of cryptocurrency investment vehicles. With increasing regulatory approvals and institutional adoption, cryptocurrencies are being recognized as a viable option for investors seeking exposure to digital assets.
