A framework allowing spot exchange-traded funds (ETFs) tied to bitcoin and ether has taken effect in Thailand, but no asset manager has submitted a formal application for approval.

Blockchain media outlet Cointelegraph reported on Oct. 22 that Thailand's Securities and Exchange Commission (SEC) said several asset managers had requested preliminary consultations on launching crypto ETFs, but none moved to the stage of filing an application.

The framework, which took effect on Oct. 17, centres on allowing spot bitcoin and spot ether ETFs to be set up locally. Under the rules, asset managers in Thailand now have an institutional basis to pursue spot bitcoin and ether ETFs as locally listed products.

The timing of actual product launches remains uncertain. The SEC drew a line, saying it was still too early to judge whether the first ETF product could be approved within this year. It added that the timing could vary depending on an applicant's state of readiness, the regulatory review and investor protection requirements.

Thai investors had already been able to gain indirect exposure to bitcoin through funds linked to overseas ETFs. One Asset Management (ONE) became the first Thai asset manager to win approval in 2024 for a fund linked to a spot bitcoin ETF. MFC Asset Management later introduced a fund that invests in BlackRock's iShares Bitcoin Trust (IBIT).

While existing products used approaches such as holding or linking to ETFs listed overseas, the new framework differs in that it allows spot bitcoin and ether ETFs to be set up directly in Thailand.

Key points to watch are the timing of actual applications and the speed of approvals. With it now confirmed that products will not appear immediately just because the framework has taken effect, the level of preparation by asset managers and whether they meet the authorities' investor protection standards are expected to determine launch schedules. With the authorities disclosing that there have not even been any filings, Thailand's crypto ETF market is likely to remain in a preparation phase for some time even after the regulatory opening.