Thailand has recently approved its first spot Bitcoin ETF, a major step in the country's financial market. The Bitcoin ETF will allow investors to buy shares that represent actual Bitcoin held by the fund.

Thailand SEC has approved One Asset Management (ONEAM) to launch the country’s first spot Bitcoin ETF,The ETF is available to institutional and high-net-worth investors. The fund is classified with a high-risk level of eight.

The ETF, called ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI), will be distributed from May 31 to June 6. ONEAM recommends that investors allocate only 5% of their portfolio to Bitcoin.

One of the key features of Bitcoin ETFs is the secure storage of coins. Unlike direct investments in Bitcoin, which are prone to risks like data loss or theft, ETFs store coins offline through custodians, ensuring high security standards.

Including Bitcoin in a portfolio can improve expected returns and the Sharpe ratio, even though overall volatility increases slightly

News source
Bangkok post