Two Thai Bitcoin mutual funds have reported impressive returns of up to 30% since their launches in June, capitalizing on growing investor demand as Bitcoin prices near $100,000 following Donald Trump’s win in the US presidential election.
Currently, only two asset management companies—One Asset Management (ONEAM) and MFC Asset Management (MFC)—have received approval from the Securities and Exchange Commission (SEC) to offer mutual funds that invest in spot Bitcoin exchange-traded funds (ETFs).
The SEC has limited investment in these mutual funds linked to spot Bitcoin ETFs to institutional investors and ultra-accredited investors (UIs) due to the significant risks associated with cryptocurrencies and digital assets. These investors must possess extensive knowledge and the ability to manage substantial investment risks.
As of Friday, Bitcoin, the world’s largest cryptocurrency, rose by 0.9% to $95,964, with analysts anticipating it may reach $100,000 later this year.
One of the funds, the ONE Bitcoin ETF Fund of Funds Unhedged (restricted to non-retail investors) with the ticker ONE-BTCETFOF-UI, was launched by ONEAM on June 6. This 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 November 26, total assets stood at 327 million baht.
Pote Harinasuta, CEO of ONEAM, noted that the ONE-BTCETFOF-UI has achieved returns exceeding 30%, reflecting the performance of its master funds. “Investor interest has surged as Bitcoin reached new all-time highs, fueled by Trump’s pro-Bitcoin stance,” he stated.
Investing in digital assets through regulated mutual funds provides advantages such as exemption from withholding tax and reliable asset custody managed by SEC-regulated firms, making these funds a more secure option compared to unregulated platforms, according to Mr. Pote.
The MFC Bitcoin ETF Tracker Fund (also not intended for retail investors), with the ticker MBTCETF-UI, focuses on investments in Bitcoin ETFs, especially via the iShares Bitcoin Trust managed by BlackRock, the largest ETF provider globally.
Chaovakorn Chotibunt, MFC’s executive vice-president and head of investment strategy, revealed that MBTCETF-UI has delivered a return of approximately 30% since its inception on June 7. As of November 23, the iShares Bitcoin Trust yielded a 99% return, while Bitcoin itself provided a remarkable 134% return.
Mr. Chaovakorn attributed the price increase to market speculation influenced by Trump’s policies, fostering optimism regarding Bitcoin’s potential role in the financial system. Responding to rising demand, MFC increased MBTCETF-UI’s registered asset size from 2 billion baht to 5 billion on November 14. By November 27, the fund’s net asset value reached 2.5 billion baht.
“Bitcoin and digital assets are considered alternative investments with very high risks,” he advised. “We typically recommend allocating only 1% of your portfolio to this sector, or an amount that reflects your risk tolerance.”
Interestingly, younger investors are showing a keen interest in digital assets, while some are turning to Bitcoin amid concerns over the stability of the US dollar, noted Mr. Chaovakorn.
