Thailand’s Securities and Exchange Commission (SEC) has approved the country’s first Bitcoin exchange-traded fund (ETF), marking a significant milestone in the region’s financial landscape. One Asset Management (ONEAM) spearheads this initiative, offering a Bitcoin ETF (ONE-BTCETFOF-UI) designed for wealthy and institutional investors. The fund is available for subscription from May 31st to June 6th.
Investment Strategy and Security
ONEAM’s Bitcoin ETF will invest in eleven leading global Bitcoin funds. This strategy ensures liquidity, adheres to international storage standards, and complies with regulations set by authorities in the U.S. and Hong Kong. Pote Harinasuta, ONEAM’s chief executive, emphasized the benefits of digital assets for diversification. “Digital assets have a low correlation with other financial assets, making them suitable for diversifying investment risks,” he stated.
Harinasuta highlighted Bitcoin’s limited supply of 21 million and its increasing demand, predicting high growth potential. He pointed out that Bitcoin has delivered an impressive average annual return of 124% over the past 11 years, despite an 83% volatility rate.
Also Read: Thailand Crypto Regulation by Targeting Unlicensed Exchanges
Risk Management and Portfolio Allocation
While acknowledging Bitcoin’s volatility, Harinasuta recommended that investors allocate about 5% of their portfolios to Bitcoin, with a projected yearly return of approximately 8.9%. He stressed that combining Bitcoin with traditional assets could enhance expected returns and improve risk-adjusted performance.
The rise of crypto ETFs globally, spurred by U.S. SEC approvals, addresses a key concern for investors: secure storage. Harinasuta noted, “Investing directly in Bitcoin raises risks like data breaches and theft, which ETFs mitigate by using institutional-grade offline custody solutions.”
