According to a news report by Calcalist, Israel is set to launch six Bitcoin-tracking mutual funds next week following approval by the Israel Securities Authority. This news came as a surprise to the Isreal crypto space, with many experts claiming the move will allow investors to buy BTC in shekels and marks a big step for crypto adoption in Israel.
After 2 years of lobbying,🇮🇱Israel is launching 6 Bitcoin mutual funds on Dec 31st for Israeli investors
— CryptosRus (@CryptosR_Us) December 26, 2024
Hmm, another country getting into Bitcoin... It's probably nothing 👀 pic.twitter.com/tCiH5HRgIH
Before we go into details about Calcalist’s reports, there’s much insight to gain from a 13-post-long thread on X titled “Israel’s Crypto Revolution." This X thread covers almost everything you need to know about the launch of these new six Bitcoin ETFs.
One of the major highlights of the thread is on why this news matters, which reads, “Israel joins a growing list of nations offering regulated crypto investment vehicles. This is more than just a product launch—it’s a gateway to mainstream crypto adoption.”
Moving on to the details from the Calcalist’s report, the six funds are expected to begin operation starting from Dec. 31, a condition imposed by the ISA. So, we can expect the funds to be available for sale at investment firms and banks on that same day.
Currently, we now know that the firms that would be offering these funds include IBI, Meitav, Phoenix Investment, Ayalon, Mor, and Migdal Capital Markets. The firms are expected to charge management fees ranging from as low as 0.25% to 1.5%.
Looking into how these funds will operate, a report from Globes reveals that one of the funds will be actively managed with the goal of outperforming Bitcoin. Additionally, transactions on the funds will initially occur once a day; however, future offerings are expected to allow for continuous trading.
Furthermore, it’s important to note that some of the new funds will aim to track exchange-traded funds (ETFs) introduced in the United States, including BlackRock’s iShares Bitcoin Trust ETF (IBIT).
The ISA's recent approval arrives nearly a year after the U.S. Securities and Exchange Commission's (SEC) authorized spot bitcoin exchange-traded funds (ETFs) in the world's largest economy.
During this period, the value of bitcoin, the leading cryptocurrency, has more than doubled, approaching record highs. Consequently, U.S.-based funds have attracted a remarkable $35.6 billion in net investments. As of December 26, the total market capitalization of all Bitcoin ETFs stands at around $114.6 billion, according to data from CoinGlass.
A senior executive from an investment firm who wished to remain anonymous in an interview with the Calcalist commented:
Investment firms have been advocating for ETF approvals for over a year and began submitting prospectuses for bitcoin funds mid-year. However, the regulator follows its own schedule and must thoroughly review all details.
Since May, Israel has been advancing its central bank digital currency (CBDC), known as the digital shekel, through an initiative called the Digital Shekel Challenge. This project encourages participants to create real-time payment systems utilizing the digital shekel, with the Bank of Israel offering a sandbox environment for testing innovations.
A primary objective of Israel's CBDC initiative is to foster competition among local banks. While there is considerable public enthusiasm for the project, concerns regarding privacy have emerged within the country.
Kataryna Habeliia
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