Thailand is About to Launch Its First Spot Bitcoin ETF
-
Loading... - Hanae Sato
- 23 Sep 2024
- 61 Views
- 0 Like
- 0 Comment
Thailand is set to launch its first spot Bitcoin ETF, marking a significant milestone in the country's cryptocurrency adoption journey. One Asset Management (ONEAM) has received approval from the Securities and Exchange Commission (SEC) to launch the ONE Bitcoin ETF (ONE-BTCETFOF-UI), beating MFC Asset Management to the punch.
The ONE-BTCETFOF-UI will launch with an investment risk level of eight, making it accessible only to wealthy and institutional investors. To ensure liquidity and safety, the ETF will invest in 11 leading global funds and hold coins to international standards, having been vetted by US and Hong Kong regulatory authorities.
ONEAM's assessments highlight the growing interest in crypto-assets and the need for investor protection. Digital assets, such as Bitcoin, offer a low correlation with other financial assets, making them an attractive option for diversifying investment risks. However, investing in Bitcoin comes with high volatility, and ONEAM recommends allocating only 5% of a portfolio to Bitcoin to achieve a return of 8.90% per year.
ONEAM's recommendations emphasize the importance of a balanced investment strategy. A portfolio with Bitcoin generates a return of 8.90% per year, with a Sharpe ratio of 0.71 and a maximum drawdown of -22.4%. In contrast, a portfolio without Bitcoin generates a return of 5.80% per year, with a Sharpe ratio of 0.48 and a maximum drawdown of -20.4%.
