Exclusive Access to New ETF Allows Ultra-Rich in Bangkok to Capitalize on Bitcoin Boom
Thailand has entered the realm of Bitcoin by launching a unique exchange-traded fund (ETF) targeted at high net-worth individuals and institutions. Amidst a global surge in interest in cryptocurrencies, Thai regulators are proceeding cautiously, placing emphasis on security and controlled access for beginners.
Limited Access For The Privileged Few
The Securities and Exchange Commission (SEC) has approved the ONE Bitcoin ETF Fund of Funds Unhedged, offered by One Asset Management (ONEAM), as reported by Bangkok Post. Unlike traditional public-accessible ETFs, this fund has specific entry requirements only for accredited investors.
Accredited investors, including institutions and wealthy individuals, are the only ones eligible to participate. This restricted access aligns with the cautious approach taken by regulators in Asia towards Bitcoin. While countries like China have implemented strict measures, others such as South Korea and Japan have imposed stringent regulations and requirements for crypto exchanges.
Security First: Bitcoin Wrapped In A Safety Net
The ONEAM ETF offers a unique investment model by investing in a selection of 11 established global Bitcoin funds instead of holding the top crypto directly. This “fund-of-funds” structure aims to reduce risks associated with individual trading platforms that have experienced security breaches in the past.
BTCUSD trading at $68,940 on the 24-hour chart: TradingView.com
Additionally, the ETF emphasizes secure storage practices by employing international standards and custodians used by institutional investors. These custodians store Bitcoin offline, significantly reducing susceptibility to online attacks.
A Diversification Play
For accredited investors, Bitcoin’s appeal lies in its potential to diversify portfolios due to its low correlation with traditional assets like stocks and bonds. Including a small BTC allocation can help decrease overall portfolio volatility.
While acknowledging the risks associated with investing in crypto, the SEC recommends a cautious approach by suggesting investors allocate only 5% of their portfolio to Bitcoin to manage volatility.
A Measured Step Forward For Thailand
Thailand’s introduction of Bitcoin ETFs signifies a calculated move by regulators to cater to the growing interest in cryptocurrency while prioritizing the protection of less sophisticated investors. The restricted access and focus on secure storage demonstrate the cautious approach adopted by Thai regulators.
In contrast, other Asian markets like Hong Kong have recently approved ETFs that directly invest in Bitcoin and Ethereum, potentially expanding access to a broader range of investors.
Featured image from Pastel, chart from TradingView
Source link
#Bitcoin #Boom #Bangkok #UltraRich #Exclusive #Access #ETF
