Six Bitcoin mutual funds will launch in Israel on December 31, 2024.
Management fees range from 0.25% to 1.5%, with one actively managed fund.
Israel is set to debut six Bitcoin mutual funds on December 31, marking a milestone for local crypto investment. The Israel Securities Authority (ISA) approved the funds last week, following years of requests from asset managers.
The mutual funds will be managed by six firms: Migdal Capital Markets, Phoenix Investment, More, Ayalon, IBI, and Meitav. According to Calcalist, all funds will launch simultaneously, a condition set by the ISA. Management fees will range from 0.25% to 1.5%, with one actively managed fund aiming to outperform Bitcoin’s price.
These funds will initially execute transactions once daily, reflecting Bitcoin’s price at that time. Future products may include continuous trading options, enhancing flexibility for investors. The funds will allow purchases in Israel’s local currency, the shekel, providing direct exposure to Bitcoin’s performance.
The approval comes amid the global adoption of Bitcoin-related investment products. The U.S. SEC’s approval of spot Bitcoin ETFs earlier this year set a precedent, leading to billions in institutional investments. Bitcoin ETFs in the U.S. now hold over $110 billion in net assets, equivalent to 5.7% of Bitcoin’s market cap.
Bridging Digital and Traditional Finance
In Israel, the demand for Bitcoin-focused investment products has grown rapidly. Asset managers began filing proposals for these funds in mid-2024. Eyal Haim, vice president at Ayalon Mutual Funds, highlighted the long-standing interest in digital currencies.
This development aligns with Israel’s broader digital finance initiatives. The country has been advancing its central bank digital currency (CBDC) project, the digital shekel, through a program called the Digital Shekel Challenge. The initiative aims to improve competition in the banking sector using real-time payment systems.
Following its December 16 surge to $108,000, Bitcoin’s cooling price underscores the global momentum for crypto investments. Institutional participation continues to drive adoption, as regulatory clarity strengthens investor confidence. The launch of Bitcoin mutual funds in Israel will expand access to cryptocurrency investments. These funds allow local investors to diversify portfolios amid the growing global interest in digital assets.
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