Exciting news for cryptocurrency investors!

Next week, Israel is set to welcome six mutual funds that will track the price of Bitcoin (BTC). This groundbreaking approval comes from the Israel Securities Authority (ISA), marking a significant milestone in the country's financial landscape, as reported by Calcalist.

Operational Details

These six mutual funds are slated to begin operations on December 31, fulfilling a specific condition mandated by the ISA to launch simultaneously. The final approval was secured last week, paving the way for these innovative investment products to enter the market.

Management and Fees

The funds will be managed by prominent financial institutions, including Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI. Management fees for these funds will vary, with a range from a competitive 0.25% to as high as 1.5%. Notably, one of these funds will be actively managed, seeking to outperform Bitcoin's price movements. Initially, transactions will occur just once each day, although future iterations may incorporate continuous trading, according to sources at Globes.

Regulatory Context

The ISA's decision follows a trend established by the United States, where the SEC granted approval for spot Bitcoin exchange-traded funds (ETFs) nearly a year ago. Since then, Bitcoin has surged in value, more than doubling and now trading near record highs. In fact, U.S.-based funds have already attracted an impressive $35.6 billion from eager investors, reflecting the growing appetite for cryptocurrency investments.

Advocacy and Approval Process

Investment firms in Israel have been advocating for ETF approval for over a year, with many even presenting prospectuses for Bitcoin funds earlier this year. However, as one unidentified executive from an investment house noted, “The regulator marches to its own tune. It has to check the details.” This highlights the careful and strategic approach the ISA is taking in dealing with cryptocurrency regulations.

Market Impact

As the launch date nears, all eyes will be on these funds and their potential impact on the Israeli financial market. Will this be the beginning of a cryptocurrency revolution in Israel? Investors are watching closely, and the stakes couldn’t be higher!

Stay Tuned!

Stay tuned for more updates as we continue to cover the unfolding developments in the world of cryptocurrency!