MFC Asset Management is launching Thailand's first Ethereum exchange-traded fund (ETF) to invest in the world's second-largest cryptocurrency amid the boom in the asset class, rallied in part by US President Donald Trump's pro-crypto policies.
Thanachot Rungsitthiwat, managing director of MFC, said the company is launching the MFC Ethereum ETF Tracker Fund (METHETF-UI), which is restricted to institutional and ultra-accredited investors (UI). The fund focuses on investing in Ethereum.
The company introduced MFC Bitcoin ETF Tracker Fund (MBTCETF-UI) in 2024, which allowed investors to gain exposure to Bitcoin, with the fund size topping 10 billion baht.
Given that success, MFC decided to introduce the Ethereum ETF to match the growing interest in digital assets.
Ethereum, the second-largest cryptocurrency by market capitalisation after Bitcoin, is a programmable blockchain that enables users to deploy smart contracts, which automatically enforce agreements without requiring intermediaries or disclosing the identities of the contracting parties.
Popular innovations built on Ethereum include stablecoins, such as USDC pegged to the dollar, decentralised finance, non-fungible tokens and GameFi, which is a combination of gaming and decentralised finance.
Ethereum is the name of the network, while Ether (ETH) is the native cryptocurrency used in the network to pay transaction fees on the platform.
Mr Thanachot said the METHETF-UI fund invests in the iShares Ethereum Trust ETF as the master fund in dollars. The master fund is structured as a trust under Delaware state law and is listed on the Nasdaq.
The fund is sponsored by iShares Delaware Trust Sponsor Llc and managed by BlackRock Fund Advisors.
The master fund aims to reflect the price of Ether before fees and expenses by directly trading Ether on a peer-to-peer basis or through digital asset investment platforms.
He said the highlight of METHETF-UI is it allows investors to access Ethereum investments through the stock market by investing in a master fund that focuses on direct investment.
The fund is one of the largest Ethereum ETFs approved by the US Securities and Exchange Commission, with a net asset value of US$3.6 billion, and it reports high liquidity.
METHETF-UI is classified as a high-risk or complex mutual fund with a risk level 8+. The fund is offered exclusively to institutional and wealthy investors.
The initial public offering is open until Feb 27, with a minimum investment of 1,000 baht.