Thailand's Crypto ETFs May Start Slowly Despite New Rules: CoinShares

New rules for Thailand's Bitcoin and Ether ETFs take effect Friday, but CoinShares expects modest initial inflows as existing investment options compete for demand.

Thailand's new bitcoin and ether ETF rules take effect on Friday, but CoinShares expects modest initial flows as existing investment options compete for demand.

Thailand's first digital currency funds (ETFs) may be starting to slow, despite Bangkok's efforts to expand access to regulated digital asset investing.

James Butterfill, head of research at digital asset investment firm CoinShares, told Cointelegraph: “I expect moderate inflows initially, with tens of millions of US dollars in the first products, a more realistic expectation than billions.

The country is opening a new avenue for crypto exposure on Friday when its rules for Bitcoin (BTC) and Ether (ETH) ETFs to be listed on the Thai stock exchange take effect.

The rules allow Thai retail investors to access locally listed crypto ETFs, while limiting overseas crypto ETF investments through domestic brokers to ultra-high-net-worth and institutional investors.

Thailand's first crypto funds require regulatory approval and necessary custody and distribution arrangements before trading.

Butterfill pointed to Hong Kong as an example of how even a major financial center can struggle to attract significant cryptocurrency ETF flows.

Hong Kong only holds 0.42 percent of assets in digital currency trading products (ETPs), despite the city's position as an international financial center, he said.

Crypto ETP is live from September 25, 2026 by country. Source: CoinShares

Globally, as of late September, crypto investment products had $172.9 billion in assets under management, including $733 million in Hong Kong, according to data from CoinShares.

Butterfill said the available investment options may limit demand for new Thai ETFs, as some investors already have exposure to bitcoin through foreign funds or direct crypto trading.

Thailand's MFC Asset Management, which Butterfly identified as a potential ETF launch company, announced its 2024 Bitcoin ETF Tracker Fund (MBTCETF-UI). The fund invests in BlackRock's iShares Bitcoin Trust (IBIT), the world's largest spot bitcoin ETF by assets under management.

MFC Bitcoin ETF Tracker Fund. Source: MFC Asset Management

"So local ETFs need to attract new investors or provide a compelling reason to switch," Butterfill said.

Aside from MFC, Butterfill pointed to ONE Asset Management as another potential ETF issuer worth watching. In 2024, ONE became the first Thai asset manager to receive Bitcoin ETF-linked fund approval.

Butterfill said he has not confirmed either company's plans to launch a locally listed crypto ETF or when the first products will start trading.

Cointelegraph contacted the SEC, ONE Asset Management and MFC Asset Management about the potential launch of the Thailand ETF but did not receive a response by press time.