Thailand First Bitcoin ETF Targets Limited To Wealthy Investors

Key Points:

• Thailand’s SEC approves the first Bitcoin ETF by One Asset Management.
• The ETF is investing in 11 global funds with secure coin storage.
• ONEAM’s CEO recommends Bitcoin for portfolio diversification.

Thailand’s SEC approved One Asset Management’s launch of Thailand first Bitcoin ETF, targeting high-net-worth and institutional investors, with secure coin storage.

Thailand’s SEC has given the nod to One Asset Management to launch the nation’s first Bitcoin ETF. The ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors will target high-net-worth and institutional investors.

According to the report, it will invest in 11 leading funds globally to ensure liquidity and safety. The coin storage is also in line with international standards, which have been taken through a regulatory review in the US and Hong Kong.

Thailand First Bitcoin ETF Launched by ONE Asset Management

ONE AM will sell the fund units on May 31-June 6 and has assigned an investment risk level of eight. ONE AM CEO Pote Harinasuta adds that digital assets such as Bitcoin are appropriate for investors looking to diversify their portfolios because their return has low correlation with other financial assets.

First of all, he indicates that the maximum amount of Bitcoin can be mined is 21 million, so the digital asset has a strong growth momentum because the supply and demand of Bitcoin imbalance the price of Bitcoin and therefore keep going up.

Bitcoin has returned an average of 124% annually in the last few years and is highly volatile. ONEAM forecasts that investors should only allocate 5% of their portfolios to Bitcoin to achieve an 8.90% annual return.

Harinasuta claims that, by adding Bitcoin to the portfolio, the expected return and Sharpe ratio of the portfolio can be improved, even if the overall volatility rises slightly.

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Ensuring Secure Coin Storage in Bitcoin ETFs

At the same time, what has to be made clear is that one of the most important characteristics of Bitcoin ETFs is that the storage of coins is highly secure.

While direct investment in Bitcoin may be risky because of the potential for data to be lost or stolen, ETFs send data or coins to custodians; this kind of storage standard is highly secure and is also used by institutional investors.