As a researcher with a background in finance and experience in the digital asset industry, I am excited about the Thai Securities and Exchange Commission’s approval of One Asset Management’s Bitcoin exchange-traded fund (ETF). This marks an important milestone for Thailand’s financial markets as it opens up new opportunities for investors to gain exposure to this emerging asset class.
The Bangkok Post reports that the Thai Securities and Exchange Commission (SEC) has granted authorization for One Asset Management, a domestic company, to launch Thailand’s initial Bitcoin exchange-traded fund (ETF).
Wealthy and institutional investors have exclusive access to this ETF, which focuses on investing in eleven renowned global funds.
A Diversified Approach
This fund, specifically the ONE Bitcoin ETF Fund of Funds Unhedged labeled as ONE-BTCETFOF-UI, is set for distribution among eligible investors between May 31st and June 6th. Unlike typical Exchange-Traded Funds (ETFs), access to this investment vehicle is restricted to wealthy and institutional investors only.
“According to ONEAM’s CEO, Pote Harinusasuta, digital assets represent a unique investment class that has a low connection to conventional financial products. These assets can aid investors in expanding their risk portfolios.”
ONEAM’s Bitcoin ETF sets itself apart by putting money into 11 prominent global investment funds in the crypto space. This method offers investors the benefits of liquidity and security. The fund is committed to following international guidelines for securely holding digital assets, and it has gone through stringent examinations by regulatory bodies based in the US and Hong Kong.
As a researcher studying the latest developments in the world of Bitcoin exchange-traded funds (ETFs), I’ve learned that ONEAM recently announced the success of its application to list a Bitcoin ETF, exclusively for high-net-worth individuals and institutions. In parallel, MFC Asset Management is currently undergoing SEC approval for an identical offering. Meanwhile, I keep tabs on these updates, eagerly anticipating the potential expansion of investment opportunities in this burgeoning asset class.
Bitcoin and Ethereum ETFs are growing in popularity around the world. The U.S. Securities and Exchange Commission (SEC) was an early adopter, granting approval for the first Bitcoin ETFs in the country earlier this year. Following suit, Hong Kong’s Securities and Futures Commission approved Bitcoin and Ethereum ETFs in April. Most recently, these products have emerged in Australia as well.
Risk Management Strategies
For the past decade and a half, Bitcoin has provided an impressive yearly average return of approximately 124%. Yet, it’s essential to note that these returns come with significant risk, as Bitcoin’s typical annual volatility stands at around 83%.
Pote Harinasuta highlighted that incorporating cryptocurrencies into a portfolio of conventional assets could boost anticipated gains and lessen risk relative to the investment’s volatility.
ONEAM cautions that investing in Bitcoin through the ETF carries risk, and recommends investors limit their exposure to no more than 5%. According to their assessment, this approach could generate an annual return of approximately 8.90%, enhancing the diversified portfolio’s risk-adjusted performance.
As a researcher, I would caution against investing in Bitcoin directly through various platforms without being aware of the potential risks. Previous issues have involved data loss and the unfortunate experience of digital assets being stolen via online systems.
The ONE Bitcoin ETF addresses security concerns by providing investors with secure custody practices akin to those employed by institutions. These custodians keep Bitcoins in offline storage, thereby reducing the likelihood of cyber assaults.
Read More
- CKB PREDICTION. CKB cryptocurrency
- PENDLE PREDICTION. PENDLE cryptocurrency
- PBX PREDICTION. PBX cryptocurrency
- EUR INR PREDICTION
- ICP PREDICTION. ICP cryptocurrency
- USD DKK PREDICTION
- GEAR PREDICTION. GEAR cryptocurrency
- USD VND PREDICTION
- CSIX PREDICTION. CSIX cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
2024-06-05 07:14