- Thai SEC approves ONEAM to launch Thailand’s first Bitcoin ETF, restricted to wealthy and institutional investors.
- ONEAM’s Bitcoin ETF invests in 11 global funds, reviewed by US and Hong Kong regulators for safety and liquidity.
- ONEAM advises investors to allocate 5% to Bitcoin, with expected returns of 8.90% per year and improved portfolio Sharpe ratio.
Wu Blockchain reported on X that the Securities and Exchange Commission, Thailand, approved One Asset Management (ONEAM) to launch Thailand’s first Bitcoin ETF. This exchange-traded fund (ETF) targets wealthy and institutional investors, marking a significant step toward integrating digital assets into Thailand’s financial system.
According to the Bangkok Post, the fund will invest in eleven top global funds to ensure safety and liquidity. International regulatory bodies in Hong Kong and the US have reviewed this ETF to ensure compliance with international standards.
The ETF will be distributed between May 31 and June 6, with an investment risk level classified as eight. This endorsement marks a significant step in Thailand’s financial market, reflecting a growing trend of integrating digital assets into traditional investment portfolios. Pote Harinasuta, the chief executive of ONEAM, stated that digital assets like Bitcoin offer low correlation with other financial assets, making them suitable for diversifying investment risks.
MFC Asset Management, another Thai asset management company, is awaiting SEC approval for its own Bitcoin ETF, which will also be available only to wealthy and institutional investors.
Regulatory organizations worldwide are increasingly recognizing Bitcoin ETFs, highlighting the potential of these products in the global financial system. The Securities and Futures Commission of Hong Kong has approved ETFs that invest in both Bitcoin and Ethereum, highlighting a trend that the U.S. SEC’s approval of spot Bitcoin ETFs has supported.
ONEAM suggests that investors allocate 5% of their portfolio to Bitcoin for an annual return of 8.90%. The maximum downside for a portfolio containing Bitcoin is -22.4%, and the Sharpe ratio, which measures return relative to risk, is 0.71. Conversely, a portfolio without Bitcoin has a maximum drawdown of -20.4% and yields a 5.80% annual return with a Sharpe ratio of 0.48. It appears that even with a slight increase in total volatility, using Bitcoin can improve the expected return and Sharpe ratio.
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