Israel is on the brink of a major development in its crypto investment landscape as it prepares to introduce six Bitcoin-linked mutual funds on Dec. 31. The funds, brought by Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI, have been approved by the Israel Securities Authority (ISA) and will initially operate with single daily transactions, with potential for continuous trading in the future.
This move by Israel reflects a growing confidence in digital asset investments and demonstrates the country’s alignment with global trends in integrating crypto products into traditional financial frameworks. The approval of Bitcoin-focused mutual funds comes at a time when crypto-based exchange-traded funds (ETFs) have been gaining significant traction.
In the United States, spot Bitcoin ETFs have seen rapid growth since their approval in 2023, accumulating billions in investor inflows and managing assets totaling over $100 billion collectively. Leading the pack is BlackRock’s iShares Bitcoin Trust (IBIT), showcasing the market’s appetite for crypto ETFs.
Experts predict a promising future for crypto ETFs, with projections of a substantial boom in 2025 driven by potential changes in SEC leadership. ETFs linked to major cryptocurrencies like Litecoin, Solana, and XRP are expected to launch, although regulatory hurdles may cause delays.
Coinbase has also highlighted the potential for innovation in the ETF space, including advancements in mechanisms like in-kind creations and redemptions. These improvements aim to enhance efficiency, reduce costs, and solidify ETFs as a crucial component of the evolving crypto ecosystem.
As Israel prepares to introduce Bitcoin-linked mutual funds, it signifies a significant step in the country’s embrace of digital assets and sets the stage for further integration of cryptocurrencies into traditional financial systems. With global trends leaning towards crypto investments and the success of ETFs in leading markets, Israel’s move signals a promising future for crypto investment opportunities.