Thailand has dipped its toe into the Bitcoin waters with a new exchange-traded fund (ETF) that’s only available to the ultra-rich.
Limited Access for the Privileged
The Securities and Exchange Commission (SEC) has approved the ONE Bitcoin ETF Fund of Funds Unhedged, offered by One Asset Management (ONEAM). Unlike regular ETFs, this one is reserved for “accredited investors,” including institutions and wealthy individuals.
Security First
Instead of investing directly in Bitcoin, the ETF invests in a group of 11 established global Bitcoin funds. This “fund-of-funds” approach spreads the risk across multiple platforms, reducing the chances of losing everything to a data breach or theft. The ETF also uses secure storage practices and international standards to protect investors’ funds.
Diversification Play
For accredited investors, Bitcoin offers a way to diversify their portfolios. Its price movements tend to be different from stocks and bonds, so adding a small amount of BTC can help reduce overall risk.
Cautious Approach
The SEC acknowledges the risks of investing in Bitcoin, including its volatility. ONEAM recommends investors allocate only 5% of their portfolio to Bitcoin.
Thailand’s Measured Step
Thailand’s Bitcoin ETF is a calculated move by regulators. It shows that they’re aware of the growing interest in cryptocurrency but want to protect less experienced investors. The limited access and focus on security reflect this cautious approach.
