Six mutual funds tracking the price of bitcoin (BTC) are set to launch in Israel next week following approval from the Israel Securities Authority (ISA). The funds, offered by Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI, will all commence operations on December 31st, as mandated by the regulator. Management fees for the funds will range from 0.25% to as high as 1.5%, with one fund being actively managed in an effort to outperform bitcoin’s performance.
Initially, the funds will transact just once a day, with plans to potentially allow for continuous trading in the future. This move by the ISA comes nearly a year after the U.S. Securities and Exchange Commission (SEC) approved spot bitcoin exchange-traded funds (ETFs) in the United States. Since then, the price of bitcoin has more than doubled and is currently trading near a record high. The U.S. funds have attracted a net total of $35.6 billion in investor cash.
According to Calcalist, investment houses have been advocating for ETF approval for over a year and began submitting prospectuses for bitcoin funds earlier in the year. The ISA took its time to carefully review the details of the funds before granting final approval. This development signals a significant step forward for the cryptocurrency market in Israel, providing investors with more opportunities to participate in the growing digital asset space.
The launch of these mutual funds in Israel reflects the increasing mainstream acceptance and adoption of bitcoin and other cryptocurrencies as legitimate investment options. As the market continues to evolve and mature, more traditional financial institutions are embracing digital assets and offering investment products that cater to investor demand for exposure to this burgeoning asset class. With the debut of these funds, Israeli investors will have easier access to bitcoin and the potential for long-term growth and diversification in their investment portfolios.