6 Bitcoin-tracking mutual funds will officially trade in Israel from December 31, marking a new step in the country's approach to the cryptocurrency market.
On December 25, the Israel Securities Authority (ISA) officially granted licenses to 6 mutual funds that track the price of Bit, making it easier for local investors to access the cryptocurrency market.
These funds, expected to launch on December 31, will be available through banks and investment firms nationwide, allowing trading in the shekel, Israel's currency. This is seen as an important step, reflecting the growing acceptance of digital assets by regulators.
Diversifying investment options
The 6 new funds will track the price of Bit through various strategies, meeting the diverse needs of investors. Some funds will closely track the performance of Bit ETFs listed in the US, such as BlackRock's iShares Bit Trust ETF (IBIT). Another fund will be actively managed with the aim of outperforming Bit. As of December 25, the total market value of global Bit ETFs reached around $143.2 billion, indicating significant growth potential in this market.
The funds are managed by major names in the mutual fund industry in Israel, including Phoenix Investment, IBI-Kessem, Meitav, More, Ayalon and Migdal. Management fees will range from 0.25% to 1.5%, providing a variety of options suitable for the risk appetite and financial capacity of each investor. The approval comes after 2 years of licensing efforts by the asset managers, reflecting their persistence and long-term vision for the cryptocurrency market.
Initially, trading will be executed once a day, with the Bit price updated at the time of the transaction. Eyal Haim, Vice President of Ayalon Mutual Funds, told Calcalist: "For many years, we have been striving to participate in the cryptocurrency field. The launch of mutual funds investing in cryptocurrency-related companies is the first step, and an important step, allowing us to meet the growing demand of investors for this asset class."
The event takes place against the backdrop of Israel actively implementing a central bank digital currency (CBDC) project called "Digital Shekel Challenge" since May. This project encourages participants to develop a real-time payment system using the digital shekel, with the support of the Bank of Israel through a sandbox environment.
The main goal of the CBDC project is to enhance competition in the banking sector, while exploring the potential of Blockchain technology to improve efficiency and reduce transaction costs. However, the project is also facing privacy concerns, an issue that needs to be carefully considered during implementation.
