Israel is set to debut six Bitcoin-tracking mutual funds on December 31, following regulatory approval from the Israel Securities Authority. These funds will provide local investors with an accessible way to invest in Bitcoin through the country’s fiat currency, the shekel.
Bitcoin Funds Aimed at Tracking Price Movements
The newly approved mutual funds will mirror Bitcoin’s price movements using various indexes and strategies. Investors can purchase them through banks and investment firms starting next week.
Among the funds, some will track well-known exchange-traded funds (ETFs) like BlackRock’s iShares Bitcoin Trust ETF (IBIT). One fund will be actively managed, aiming to outperform Bitcoin’s price performance.
Market Cap and Management Details
As of December 25, the combined market capitalization of all Bitcoin ETFs globally stands at $143.2 billion.
The six funds in Israel are managed by prominent asset management firms, including Phoenix Investment, IBI-Kessem, Meitav, More, Ayalon, and Migdal. Management fees for these funds range from 0.25% to 1.5%.
Initially, buy and sell orders will be processed once a day, reflecting Bitcoin’s price at the time of execution.
Long-Awaited Approval
The Israel Securities Authority granted regulatory approval last week after two years of applications from asset managers. Eyal Haim, vice president of Ayalon Mutual Funds, stated that his firm has been eager to enter the digital currency space.
“For years now, as an investment house, we have been trying to join the digital currency sector. We launched a mutual fund that deals with companies in the field, recognizing that their price is derived from changes in digital currencies,” Haim told local media outlet Calcalist.
Israel’s Growing Focus on Digital Assets
This development aligns with Israel’s broader efforts to integrate digital assets into its financial system. Since May, the country has been advancing its central bank digital currency (CBDC) project, known as the Digital Shekel Challenge.
The initiative encourages participants to create real-time payment systems using the digital shekel, with testing facilitated by the Bank of Israel in a sandbox environment.
The primary goal of the CBDC project is to increase competition among local banks, but it has also sparked debates about privacy concerns.
