Thailand SEC Approves First Bitcoin ETF Foe Investors

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As a seasoned crypto investor with a keen interest in alternative assets, I’m thrilled to hear about Thailand’s first Bitcoin exchange-traded fund (ETF) approval. ONEAM’s offering is particularly intriguing because it caters to wealthy and institutional investors, ensuring a level of liquidity and regulatory compliance that many of us crave.

Based on local news, Thailand’s Securities and Exchange Commission (SEC) has given the green light for the first Bitcoin exchange-traded fund (ETF) in Thailand. One Asset Management (ONEAM) is leading the charge, providing an unhedged and institutional-grade bitcoin ETF (ONE-BTCETFOF-UI) to wealthy and institutional investors from May 31st to June 6th.

As a researcher studying investment strategies, I would describe it this way: “I believe in the potential of digital assets like Bitcoin to diversify investment portfolios due to their low correlation with traditional financial assets. With a limited supply of 21 million Bitcoins but increasing demand as its popularity surges, our fund intends to invest in eleven prominent global Bitcoin funds. These investments ensure liquidity and adherence to international storage standards and regulatory compliance overseen by both the United States and Hong Kong.”

Based on his explanation, Bitcoin has provided a remarkable annual return of approximately 124%, on average, over the past eleven years. However, it comes with a relatively high volatility rate of 83%. ONEAM recommends investing around 5% of your portfolios in Bitcoin, estimating potential yearly returns to be about 8.9%.

Harinasuta pointed out that although Bitcoin is known for its price volatility, incorporating it into a diversified portfolio with conventional assets could potentially enhance returns and decrease risk.

With crypto Exchange-Traded Funds (ETFs) becoming increasingly popular worldwide due to regulatory approvals in the US, the Thai fund acknowledges a significant investor worry: safekeeping. Harinasuta explained, “Investing directly comes with risks such as data breaches and theft, which ETFs mitigate by employing top-tier offline custody solutions.”

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2024-06-04 04:36