Six Bitcoin mutual funds launched in Israel on December 31, 2024, following approval from the Israel Securities Authority (ISA). This milestone allows local investors to explore cryptocurrency investments more easily.
These funds track Bitcoin's price movements using various strategies and indexes, enabling investors to purchase them in Israel's local currency, the shekel. They are available through banks and investment firms. Notably, some funds mirror U.S.-based exchange-traded funds (ETFs), including BlackRock's iShares Bitcoin Trust ETF (IBIT), while one fund is actively managed with the goal of outperforming Bitcoin itself.
Management fees for these new funds range from 0.25% to 1.5%, making them accessible to a wide array of investors. Currently, the total market cap for all Bitcoin ETFs stands at approximately $144 billion, underscoring the growing interest in cryptocurrency investments.
This regulatory approval comes after two years of requests from asset managers in Israel. Eyal Haim, vice president of Ayalon Mutual Funds, expressed excitement about this development, noting that their firm has long sought to engage with the digital currency sector. The funds will initially execute buy and sell orders once a day, reflecting Bitcoin's price at that time.
In parallel, Israel is also advancing its own central bank digital currency (CBDC), known as the digital shekel. This initiative aims to foster competition among local banks and enhance payment systems through real-time transactions.
The launch of these Bitcoin mutual funds is a pivotal moment for institutional acceptance of cryptocurrency investments in Israel, catering to a growing demand for regulated crypto products among local investors. Rapidz recognizes this trend and stands ready to assist corporates and institutional clients in adopting effective solutions for crypto payments and investments.
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