Thailand’s SEC has opened public comments on a proposed crypto ETF framework that initially centers trading and custody within domestic institutions for Bitcoin and Ethereum products.

The framework prioritizes onshore digital asset custodians, while allowing qualified foreign custodians under regulatory oversight, and sets a path for future inclusion of other assets.

Initial products would be passive, single-asset funds holding Bitcoin or Ethereum, with rules prohibiting wrapped-style funds at first and potential expansion to altcoins if criteria are met.

Investors would receive product-risk education and disclosures, and intermediaries would assess diversification, risk tolerance, and financial capacity before trading.

Before purchase, investors must acknowledge risks, while intermediaries emphasize diversification and client financial capability.

Foreign custodian providers for mutual and private funds would need supervision by a regulatory authority with strong powers and operate under standards protecting investors and assets.

The rollout would start with simple, single-asset funds and strict suitability rules, with public comments due by September 20, 2026 and rules expected later in the year, though no launch date is set.

The article includes standard policy notes and editorial disclosures about investment risk and separation of content from sponsorships.

The consultation period runs through September 20, and foreign custodians would face regulatory requirements under the framework.

The report was published on August 25, with contact details for the author.

The framework signals a shift toward retail investors, broadening access beyond only high-net-worth and institutional participants.

Final rules are expected in the second half of 2026 after the consultation, with implications for institutional capital and domestic financial services in Thailand.