In a prominent move reflecting the growing mainstream acceptance of cryptocurrencies, Thailand’s Securities and Exchange Commission [SEC] has launched the country’s first Bitcoin exchange-traded fund [ETF]. This development marks a pivotal moment for both the cryptocurrency industry and the broader investment landscape in Thailand.
According to reports, One Asset Management [ONEAM] has emerged as a trailblazer in this arena. This is with the approval to offer the first Bitcoin ETF to affluent and institutional investors. The fund, named ONE-BTCETFOF-UI, is set to commence from May 31 until June 6, opening doors for investors to diversify their portfolios into the world of digital assets.
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Bitcoin’s Investment Appeal
Pote Harinasuta, the Chief Executive of ONEAM, emphasized the rationale behind introducing such a vehicle. He stated that digital assets like Bitcoin offer a unique opportunity for investors to diversify their portfolios. He further added,
“Digital assets are an alternative asset that has low correlation with other financial assets. They are suitable to help investors diversify investment risks. Although the supply of Bitcoin is limited at 21 million, demand is rising as it gains popularity. We see high growth potential for Bitcoin.”
The allure of Bitcoin lies not only in its potential for high returns but also in its volatility. This characteristic presents both opportunities and challenges for investors. BTC displayed an impressive average annual return of 124%, albeit with a volatility rate of 83%. To manage the associated risks, ONEAM recommends allocating only about 5% of portfolios to Bitcoin, projecting a yearly return of around 8.9%.
The approval of Thailand’s first Bitcoin ETF reflects a broader global trend towards embracing cryptocurrency investment vehicles. With regulatory approvals and institutional adoption on the rise, cryptocurrencies are increasingly viewed as a viable avenue for investors to gain exposure to digital assets.
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