Price of Cryptocurrencies Rise Moments After Thai’s SEC Approved ETFs 

Price of Cryptocurrencies Rise Moments After Thai’s SEC Approved ETFs 

Thailand’s Securities and Exchange Commission (SEC) has announced its approval for institutional and wealthy individual investors to invest in bitcoin exchange-traded funds (ETFs), a historic move that might have significant effects on the global cryptocurrency market.

The general public’s acceptance and use of digital assets have advanced significantly as a result of this historic decision, and experts anticipate a spike in cryptocurrency values. The Thai SEC’s decision was made at a critical time in the development of the bitcoin market, with regards to the spot ETF approval and the BTC reaching an all-time high.

Under the new Thai law, certified asset managers operating in Thailand can invest in spot BTC ETFs that are listed in the United States exchanges. The announcement was made by SEC’s Secretary-General, Pornanong Budsaratragoon when discussing Thailand’s progressive position on integrating cryptocurrencies into its financial system.

Analysts Comment Says Current Decision May Affect Cryptocurrency Value 

Arnab Shome, an analyst with Finance Magnet, believes that the move will have a significant effect on cryptocurrency values, as wealthy and institutional investors want to invest in digital assets in order to take advantage of the potential returns that cryptocurrency exchange-traded funds (ETFs) offer.

Shome added that this inflow of institutional money may raise prices generally and spark fresh bullish momentum in the Bitcoin market. ETH News Syofri, in his comments, opined that the decision made by the Thai SEC is probably going to give investors and market players more confidence because it shows that cryptocurrencies are becoming more accepted and legitimate in the established financial system.

Apart from granting affluent and institutional investors access to cryptocurrency ETFs, the Thai SEC is making efforts to expand these investment prospects to include individual investors. If put into action, this measure might democratize access to digital assets and provide more people with the opportunity to invest.

Industry Expert Reminisce Thailand’s Journey to Digital Investment, Recalls Events

Analysis by Fhumulani Lukoto, an industry analyst with Coin Insider, explained that  Thailand has been leading the Asian continent in the digital assets journey. According to Lukoto, the country had introduced their first regulatory guideline in 2018. The first law was introduced to regulate Initial Coin Offerings (ICOs) and digital assets.

The said guideline was introduced to provide legitimacy and specifics to the rising influence of Thailand’s digital assets sector, giving protection and financial guarantees to investors. The action has been described as a significant advancement in the general public’s acceptance of digital assets and the growing acknowledgment of cryptocurrencies as respectable forms of investment.

Lukoto also believed that the Bitcoin ecosystem is poised for future expansion and innovation as long as individual investors are considered as part of  investment options. The recent development is believed to have the propensity to pressure other countries’ regulators to reconsider their position on the spot BTC ETFs by coming up with policies that accommodate its operations.

In 2022, Thailand issued a directive that restricted cryptocurrencies and other related digital assets as a form of payment, compelling its SEC in 2023 to move to banning cryptocurrency transactions either for investment or lending purposes.

SEC’s Secretary-General Speaks, Says Assets Management Companies Have Declared Intentions

According to Budsaratragoon, the new development in the Thai financial system, which made the Thai securities companies get involved in the investment trend, was occasioned by the recent repositioning of spot BTC ETF as a financial security instead of a cryptocurrency asset and enshrined under the SEC Act.

The country’s SEC is also working on democratizing access to cryptocurrencies and other digital assets. This consideration is coming at a time when the Thai SEC is becoming skeptical about the implementation process, considering the cryptocurrency’s fragile nature. 

Addressing journalists in a communique, Pornanong revealed that assets management companies have made their intentions known regarding digital assets in Thailand, with the BTCs and spot BTC ETF being the most sought-after.

However, a recent investigation into Thailand’s digital assets operations shows that the country has been allowing interested retail investors to participate in construction, infrastructure, and real estate cryptocurrency-induced investments.

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Jesse Rosenbalm
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Jesse Rosenbalm

Jesse Rosenbalm stands out in the crypto journalism realm, seamlessly blending intricate blockchain concepts with accessible prose. Known for his deep dives and accurate forecasting, Jesse's articles are a must-read for both novices and experts. As crypto trends shift, his insightful writings remain a beacon in the digital currency space.

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