Six Bitcoin funds launched in Israel after approval

A new development will soon be implemented in the Israeli financial market as six new mutual funds linked to the performance of Bitcoin will be created. Fired On December 31st. This is an important step towards realizing cryptocurrencies as a component of investment products within the country.

The funds, which were licensed last week by the Israel Securities Authority (ISA) and can be accessed through the country’s local currency, the shekel, will allow investors to invest in Bitcoin. These funds will be purchased at the market price of Bitcoin specified at the times orders are placed once per day.

These new mutual funds will track the price of Bitcoin through a number of methods such as indexes and active. Some funds will also include tracking other leading U.S. Bitcoin ETFs such as BlackRock’s iShares Bitcoin Trust ETF, or (IBIT). More specifically, one of the funds will be managed to beat it Bitcoin Actively coming back.

Management fees for Bitcoin funds range from 0.25%-1.5%.

The estimated management fees for these funds should range between 0.25% and 1.5%, which is completely variable to encourage investment. It is expected that these funds will be activated through banks and investment companies as of December 31.

Six of Israel’s leading mutual fund managers are behind the initiative: the companies include Phoenix Investment, IBI-Kessem, Phoenix Meitav, More Delek, Ayalon and Migdal. All of them entered the cryptocurrency market after engaging in regulatory talks and seeking permissions for two years.

Since Israelis’ interest in cryptocurrencies has increased, the launch became a natural step. This step changed the investment house, according to Eyal Haim, Vice President of Ayalon Investment Funds Company.

“For years now, as an investment house, we have been seeking to enter the cryptocurrency industry.” Obviously there would be a fund that would invest in such companies, and we realized that its value was linked to the volatility of cryptocurrencies.”

The purpose of the funds is to make investing in Bitcoin as easy and normal for the Israeli investor as possible. Instead of exchanging crypto assets directly, investors are ditching the dollar and pricing their investments in shekels as it remains a difficult factor for many participants.

Bitcoin tracking funds entering the market are linked to Israel’s additional study on Blockchain and digital currency Features. Since May, the country has been working hard on its first central bank digital currency (CBDC), known as the digital shekel, under the Digital Shekel Challenge.

It’s a competition in which people come up with real-time payment solutions that include the shekel, with the Bank of Israel providing the testing environment. The project’s goal is to enhance competition between local banks and improve financial operations. This initiative was generally well received, but there were concerns about its privacy implications.

This approval of Bitcoin tracking mutual funds in Israel is a general development in institutional acceptance of cryptocurrency investments. Currently, as of December 25, the market capitalization of Bitcoin ETFs is estimated at approximately $1,433 billion, which explains the huge interest from institutional and retail investors.

The new launch in the country also highlights the country’s desire to participate in new financial products and the need to serve investors seeking to invest in emerging digital assets. The move also underscores the growing importance of cryptocurrencies in traditional finance, where mutual funds act as intermediaries for people who are not ready to invest in businesses of an obscure nature.

As Israel prepares for this new era of financial liberalization, these Bitcoin tracking funds can teach us lessons about developing further digital currencies. encryption Investment products.