The Israel Securities Authority has approved the launch of six Bitcoin-linked mutual funds.
These funds will be available to investors starting December 31, 2024, representing a milestone in the integration of cryptocurrencies into the Israeli financial market.
Fund details and management models
The new funds were created to track the price performance of Bitcoin, using various indices and strategies. One of the funds will be actively managed, seeking to outperform the asset itself. Others will be benchmarked against established Bitcoin ETFs, such as BlackRock's IBIT.
‘Investment houses have been pushing for over a year to approve mutual funds, sending out Bitcoin fund prospectuses as early as mid-year,’ a fund company executive reportedly told Calcalist.
Israeli asset managers Phoenix Investment, IBI-Kessem, Meitav, Migdal, More and Ayalon are behind the management of these financial products. Management fees range from 0.25% to 1.5%, depending on the fund. Initial purchases and sales will be made once a day, reflecting the price of Bitcoin at the time of the transaction.
The regulatory approval comes after two years of applications and negotiations with Israeli financial authorities, highlighting the growing institutional interest in the cryptocurrency sector.
Local impacts and connection to Israel’s digital currency
The new funds will allow investors to use the local currency, the shekel, to gain exposure to Bitcoin, eliminating the need to purchase the asset directly.
This meets the growing demand for innovative financial products in a safe and regulated environment. Furthermore, the launch comes in parallel with the development of the Digital Shekel, promoted by the Bank of Israel.
This initiative seeks to modernize the financial system by offering digital payment solutions and increasing competition among local banks. Although the proposal has public support, privacy issues remain under debate.
With these developments, Israel strengthens its position as a leader in integrating innovative financial technologies into the traditional market. The new funds not only expand access to cryptocurrencies, but also position the country at the forefront of regulated adoption of digital assets.