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Israel to Debut Bitcoin Mutual Funds Tracking BlackRock’s IBIT and Other Indices
Israel is set to become the latest country to enter the world of cryptocurrency investment with the upcoming launch of six Bitcoin mutual funds, marking a significant milestone in the region’s adoption of digital assets. The funds will be available on the Tel Aviv Stock Exchange (TASE) by December 31st, after securing approval from the Israel Securities Authority.
The new funds, managed by major Israeli fund managers such as Meitav and IBI, will track various Bitcoin indices including BlackRock’s IBIT, S&P, and Chicago Stock Exchange benchmarks. This move aims to provide investors with a convenient and regulated way to gain exposure to the cryptocurrency market within their existing portfolios, eliminating the need for currency conversion, digital wallets, or foreign exchange.
According to industry executives, the delay in approval was regrettable as it means that investors have missed out on a significant portion of Bitcoin’s price appreciation. Since the start of 2024, the digital asset has surged by approximately 126%, trading at around $98,000 per coin.
Notably, Meitav and IBI will charge management fees of only 0.25% for their respective funds, while Migdal Mutual Funds’ shekel-denominated mutual fund will carry a fee of 0.8%. This is a significant development as the Israeli financial industry gears up to provide its citizens with a more comprehensive suite of investment options.
The launch comes in the wake of recent market volatility, which has led some investors to seek safer and more regulated ways to participate in the cryptocurrency market. By offering these new funds, investors will be able to track Bitcoin’s performance while also diversifying their portfolios, further solidifying Israel’s position as a key player in the global crypto scene.
“It is impossible to argue that the SEC’s approval was one of the reasons that pushed the price of Bitcoin up,” said Eyal Goren, deputy CEO of IBI Funds. “As soon as they started making the product available to the public, it changed the game.”
The development has sent shockwaves throughout the industry, with many analysts predicting a significant influx of capital into the Israeli market. The move is expected to provide investors with more options and flexibility in their investment choices, while also offering a regulated platform for institutions to engage with digital assets.
“We have recently witnessed a growing demand from the investing public to invest in digital currencies in a supervised manner through the capital market,” said Lior Kagan, CEO of Meitav Mutual Funds. “We thank the Israel Securities Authority for promoting this product through a supervised instrument.”
The funds will be available through banks and investment houses, but it’s essential to note that they primarily provide exposure to Bitcoin-related index products rather than direct Bitcoin investment. This means fund returns may not mirror Bitcoin’s performance.
Lior Kasharian, Migdal Mutual Funds CEO, echoed similar sentiments, stating that the shekel-denominated mutual fund launch is a positive development for Israeli investors, enabling them to easily track this digital asset.
It remains to be seen how these new funds will be received by the market, but one thing is clear: Israel’s financial industry has taken another significant step towards mainstream adoption of cryptocurrency.
Source: cryptobriefing.com
