Thailand is set to introduce its first Bitcoin ETF, targeting wealthy and institutional investors. Approved by the Thai Securities and Exchange Commission (SEC), One Asset Management (ONEAM) will launch this pioneering financial product.
A New Investment Avenue for Wealthy Investors
The ONE Bitcoin ETF, exclusively available to high-net-worth individuals and institutional investors, will be launched by One Asset Management. This ETF, named ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI), will be available between May 31 and June 6. Unlike traditional ETFs, this one is tailored specifically for a select group of investors.
“Digital assets are an alternative asset class with low correlation to traditional financial instruments,” said Pote Harinasuta, CEO of ONEAM. “They are suitable to help investors diversify investment risks,” he added.
A Strategic and Diversified Investment Approach
ONEAM’s Bitcoin ETF adopts a unique strategy by investing in 11 leading global funds, ensuring liquidity and safety for investors. The fund adheres to international standards for storing digital assets and has undergone thorough reviews by regulatory agencies in the United States and Hong Kong.
While ONEAM prepares to launch its Bitcoin ETF, MFC Asset Management is awaiting SEC approval for its own spot Bitcoin ETF, which will also cater exclusively to high-net-worth individuals and institutional clients.
Globally, spot Bitcoin ETFs are gaining momentum. Earlier this year, the U.S. SEC approved the first batch of such ETFs. In April, Hong Kong’s Securities and Futures Commission also permitted ETFs that include both Bitcoin and Ethereum, followed by a similar product launch in Australia.
Managing the Risks and Rewards of Bitcoin Investment
Over the past 11 years, Bitcoin has delivered an average annual return of 124%, accompanied by significant volatility, with an average annual volatility rate of 83%.
Pote Harinasuta highlighted that while Bitcoin is highly volatile, integrating it with traditional assets can enhance expected returns and improve risk-adjusted performance. ONEAM advises investors to allocate only 5% of their portfolio to Bitcoin through the ETF. Their analysis suggests that such a strategy could yield an annual return of 8.90% while potentially enhancing the overall portfolio’s risk-adjusted return.
“Investing in Bitcoin directly through various platforms contains risks, with past problems including data loss or stolen digital assets via the online system,” noted Pote Harinasuta.
The ONE Bitcoin ETF aims to mitigate these security concerns by employing custodian-level security practices, similar to those used by institutional investors. These custodians use offline storage for Bitcoin, minimizing the risk of online attacks.