Israel is set to introduce six Bitcoin-linked mutual funds on Dec. 31, marking a significant step in the country’s crypto investment landscape. The funds were introduced by Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI, and received approval from the Israel Securities Authority (ISA) last week. Initially operating with single daily transactions, future iterations may offer continuous trading capabilities. This move reflects growing confidence in digital asset investments in Israel and aligns with global trends of integrating crypto products into traditional financial frameworks.
The launch of Bitcoin-focused mutual funds in Israel comes at a time when crypto-based exchange-traded funds (ETFs) have achieved significant success. In the US, spot Bitcoin ETFs have seen rapid growth since their approval in 2023, accumulating billions in investor inflows and managing assets of over $100 billion collectively. BlackRock’s iShares Bitcoin Trust (IBIT) leads this growing market. Market experts predict a promising future for crypto ETFs, expecting a boom in 2025 driven by potential shifts in SEC leadership and the launch of ETFs tied to major cryptocurrencies like Litecoin, Solana, and XRP.
Coinbase has also highlighted the potential for innovation in the ETF space, including mechanisms like in-kind creations and redemptions that could enhance efficiency and reduce costs, strengthening ETFs as a cornerstone of the evolving crypto ecosystem. The introduction of Bitcoin-linked mutual funds in Israel reflects a broader trend of increasing acceptance and integration of cryptocurrencies into traditional financial markets, paving the way for further developments in the sector. Israel’s approval of these funds showcases its readiness to embrace digital assets as part of its investment landscape and signals a positive outlook for the future of crypto investments in the country.
Overall, the launch of Bitcoin-linked mutual funds in Israel signifies a significant milestone in the country’s crypto investment landscape, reflecting a growing confidence in digital asset investments and aligning with global trends. With the success of crypto-based ETFs in the US and the potential for further innovations in the ETF space, the future looks promising for the integration of cryptocurrencies into traditional financial frameworks. The approval of these funds by the Israel Securities Authority marks a positive step towards embracing digital assets as part of the country’s investment landscape, setting the stage for further developments in the sector.
