The Thai Securities and Exchange Commission (SEC) has confirmed that One Asset Management (ONEAM) has become the first company to launch a Bitcoin spot exchange-traded fund (ETF) in the country, exclusively for investors. wealthy private organization.
The fund has a policy of investing in 11 leading global funds to ensure liquidity and safety, storing coins according to international standards and is being reviewed by international regulatory agencies in the US and Hong Kong.
ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI) is expected to be distributed from May 31 to June 6, with an investment risk rating of 8.
Meanwhile, MFC Asset Management continues to wait for SEC approval to acquire a Bitcoin ETF, so it cannot yet reach wealthy institutional investors.
* Mr. Pote Harinasuta, CEO of ONEAM said:
• In April, the Hong Kong Securities and Futures Commission also authorized the establishment of ETFs investing in both Bitcoin and Ethereum,
• Bitcoin's total market capitalization is currently 1.35 trillion, compared to 4 trillion in gold market capitalization.
• Digital assets are alternative assets with low correlation to other financial assets. They are suitable to help investors diversify investment risks.
• Thus, Bitcoin ETFs are receiving international recognition, especially from regulators in many countries after the US SEC approved funds to directly invest in spot Bitcoin through ETFs at the beginning of the year. now.
* Mr. Pote commented:
"While Bitcoin supply is limited to 21 million, demand is growing due to its growing popularity. We see high growth potential for Bitcoin."
Over the past 11 years, Bitcoin's average returns have been as high as 124% per year, while average annual volatility has also increased at 83%.
“Investing in Bitcoin can yield good returns but comes with high volatility.”
ONEAM recommends investors allocate only 5% of their portfolio to Bitcoin to achieve a return of 8.9% per year.
This portfolio's return to risk (Sharpe ratio) is 0.71, with a maximum downside of -22.4%.
The no-Bitcoin portfolio generated a return of 5.8% per year, with a Sharpe ratio of 0.48 and a maximum drawdown of -20.4%.
According to Pote, this shows that holding Bitcoin improves expected returns and Sharpe ratios, despite a slight increase in overall volatility.
He said an important feature of the Bitcoin ETF is the security of coin storage.
“Investing directly in Bitcoin through various platforms carries risks, with prominent problems in the past such as data loss or digital assets being stolen through online systems.”
When investing through an ETF, the holder's data or coins will be distributed by the custody organization (custody). This organization offers the same standard used by institutional investors, meaning highly secure, offline coin storage.
