The draft marks the second round of formal consultation. The first ran from April through May 2026 and produced support from most respondents for the principles, along with pushback on custody rules. This round moves from principles to specific regulatory requirements, though the framework is still at least two steps from finalization: the SEC must collect comments, revise the draft, and issue an authorization decision before any product can launch.

Under the proposed rules, each ETF must keep at least 80% of its average net asset value invested in a single underlying cryptocurrency throughout the full accounting year. Only BTC and ETH qualify in the initial phase. All funds must be passively managed, meaning they track the price of the underlying asset rather than making active allocation decisions. Trading will be restricted to the SET, and the rules prohibit instruments linked to foreign crypto ETFs during this stage. The framework would also change something fundamental about Thai market access: current regulations allow domestic mutual funds and private funds to invest only in overseas crypto ETFs. The new rules would permit investment in locally domiciled products for the first time. The initial framework is expected to follow the pattern set by the SEC's June 2024 spot Bitcoin ETF approval, which was limited to institutional investors and high-net-worth individuals. Retail access appears likely to be deferred to a later phase.

Custody requirements drew the most scrutiny during the first consultation round, and the draft keeps a clear preference for domestic providers. SEC-regulated onshore digital asset custodians must serve as primary custodians. Qualified foreign custodians are permitted only when the SEC determines it is necessary and appropriate, and those firms must satisfy both their home-jurisdiction rules and Thai SEC asset protection standards. Analysts have noted that the dual requirement raises the barrier for global custody providers such as Coinbase Custody, while creating an advantage for licensed local platforms including Bitkub, Thailand's largest licensed crypto exchange.

SEC Secretary-General Pornanong Budsaratragoon framed the initiative as a structural shift rather than a product launch. "This development will help promote more inclusive market growth, facilitate diversification and more effective risk management, and expand investment opportunities for a broader range of investors," she said in remarks on the SEC's three-year strategic plan for digital assets. She has also signaled that expanding to a basket of cryptocurrencies beyond BTC and ETH is under consideration for future phases.

The proposal sits inside a broader digital asset strategy the SEC has been building since mid-2024. The timeline includes the approval of the first spot Bitcoin ETF for institutional and high-net-worth investors in June 2024, a cabinet approval of Derivatives Act amendments covering Bitcoin futures and options in February 2026, and an ongoing sandbox for a baht-pegged stablecoin. The Thailand Digital Assets Exchange has approved six tokenized real-world asset ICOs across real estate, film, and carbon credits, raising a cumulative $263 million. The SEC has also described plans to connect deposit tokens, e-money, and the baht stablecoin into a single on-chain settlement system. Butree Vangsirirungruang, an SEC director, described supporting digital assets as "a core strategy for the next three years" at Southeast Asia Blockchain Week in May 2026.

The market context gives the framework real weight. Thailand has more than 7 million domestic digital asset holders, roughly one in ten adults, and the country ranked 16th on the Chainalysis Global Crypto Adoption Index in 2024, the most recent available ranking. Above the global average ownership rate of approximately 15%, Thailand sits closer to 18 to 20% retail participation. Daily trading volume across domestic platforms averages around $95 million. The government has also kept capital gains tax on cryptocurrency at 0% through 2029, a deliberate policy choice to retain digital asset activity onshore. Retail crypto payments, by contrast, remain banned by the central bank. The ETF pathway operates entirely within the regulated capital markets system.

Regionally, Thailand is moving to close the gap with Hong Kong, which approved spot Bitcoin and Ether ETFs in April 2024 and has built a relatively mature retail crypto product ecosystem. Singapore permits institutional digital asset structures but applies stricter retail limits. South Korea had not released a public draft of its Digital Asset Basic Act as of mid-2026. For ASEAN neighbors including Vietnam, the Philippines, and Indonesia, which are still drafting their own frameworks, the two-phase Thai consultation model and the explicit 80% NAV floor could serve as a reference structure. The SEC had originally targeted Q3 2026 for the launch of spot BTC and ETH ETFs on the SET. With the public comment period closing September 20 and further review and authorization steps still ahead, that window has effectively passed. A launch before the end of 2026 is the more realistic near-term timeline.