Two Thai Bitcoin Mutual Funds Post Returns Reaching 30% Following Their Launches in June

Only two asset management companies -- One Asset Management (ONEAM) and MFC Asset Management (MFC) -- have been approved by the Securities and Exchange Commission (SEC) to launch mutual funds investing in spot Bitcoin exchange-traded funds (ETFs).

Two asset management companies have launched mutual funds to invest in spot Bitcoin exchange-traded funds (ETFs) after receiving approval from the Securities and Exchange Commission (SEC).

The funds are not available to retail investors and are instead limited to institutional investors and ultra-accredited investors (UI) due to the high risks associated with cryptocurrencies and digital assets. These investors must have extensive knowledge and the capacity to manage significant investment risks.

One of the funds is the ONE Bitcoin ETF Fund of Funds Unhedged (ticker: ONE-BTCETFOF-UI), launched by ONE Asset Management (ONEAM) on June 6.

The fund diversifies its investments across several master funds, including the Franklin Bitcoin ETF (50.6% of the portfolio), iShares Bitcoin Trust Fund (38.4%) and Fidelity Wise Origin Bitcoin Fund (10.5%).

As of Nov 26, the fund's total assets amounted to 327 million baht.

According to Pote Harinasuta, chief executive of ONEAM, the fund has achieved returns of more than 30%, reflecting the performance of its master funds.

"We've seen a surge in interest from investors as Bitcoin scales new all-time highs, largely driven by Trump's pro-Bitcoin policies," he said.

Investing in digital assets through regulated mutual funds offers benefits such as exemption from withholding tax and reliable asset custody by SEC-regulated management companies, making such funds a safer and more secure option than non-regulated platforms, Mr Pote added.

The other fund is the MFC Bitcoin ETF Tracker Fund (ticker: MBTCETF-UI), launched by MFC Asset Management (MFC) on June 7.

The fund invests in Bitcoin ETFs, primarily through iShares Bitcoin Trust, which is managed by BlackRock, the world's largest ETF provider.

Chaovakorn Chotibunt, executive vice-president and head of investment strategy at MFC, said the fund has delivered a return of roughly 30% since its inception.

As of Nov 23, iShares Bitcoin Trust yielded a return of 99%, while Bitcoin itself delivered a 134% return.

The price surge is largely attributed to market speculation, which has created optimism about Bitcoin's potential roles in the financial system, driven by Trump's policies, according to Mr Chaovakorn.

Based on rising demand, MFC expanded the fund's registered asset size from 2 billion baht to 5 billion on Nov 14.

As of Nov 27, the fund's net asset value stood at 2.5 billion baht.

"It's important to note that Bitcoin and digital assets are considered alternative investments and come with very high risks," he said.

"We generally recommend allocating only 1% of your portfolio to this segment, or an amount that aligns with your risk tolerance."

According to Mr Chaovakorn, younger investors have shown a stronger interest in digital assets, while some investors are turning to Bitcoin due to concerns about the stability of the US dollar.