Key Takeaways
- Israel will debut six Bitcoin mutual funds through major fund managers such as Meitav and IBI.
- The mutual funds will track various indices, such as BlackRock’s IBIT and the S&P, which trade on the Tel Aviv Stock Exchange.
Israeli fund managers will debut six Bitcoin mutual funds on December 31 after receiving approval from the Israel Securities Authority, according to local news report.
The funds, which will trade on the Tel Aviv Stock Exchange, will track various Bitcoin indices including BlackRock’s IBIT, the S&P and the Chicago Stock Exchange. Fund managers include Meitav, Migdal Capital Markets, IBI and Aialon.
Although the report mentions the iShares Bitcoin Trust, it is unclear which specific fund will track this index.
IBI and Meitav will each charge a 0.25% management fee, and their funds will track the S&P Bitcoin Index and the CME CF Bitcoin benchmark, respectively.
Migdal Capital Markets, one of the largest and oldest investment houses in Israel, will offer a fund that tracks the Indkk Bitcoin Reference with a fee of 0.25%, while Aialon’s actively managed Bitcoin Exposure fund will charge 0.8%.
“It is impossible to argue that the SEC approval was one of the reasons that pushed up the price of Bitcoin.” As soon as they started making the product available to the public, it changed the game,” said Eyal Goren, Deputy General Director of IBI Funds.
The approval comes after two years of industry requests to Israeli regulators, who ordered the simultaneous launch of all approved funds. Bitcoin is trading at around $98,000, up 126% since the start of 2024. for CoinGecko.
Industry executives have expressed regret at the timing, suggesting that an earlier approval could have captured more of bitcoin’s price.
The fund provides investors with convenience. It is purchased in shekels within the client’s existing investment portfolio, eliminating the need for currency conversion, digital wallets or foreign exchange, says Eyal Haim, vice president of Aialon Mutual Funds.
“We have recently witnessed a growing demand from the investing public to invest in digital currencies under supervision through the capital markets, and we thank the Israel Securities Authority for promoting the product through the supervisory instrument,” he said Lior Kagan, CEO of Meitav Mutual Funds.
The funds will be available through banks and investment houses, although they primarily provide exposure to Bitcoin-related index products rather than direct investment in Bitcoin. This means that the return of funds may not reflect the performance of Bitcoin.
Lior Kasharian, CEO of Migdal Mutual Funds, said the launch of the shekel mutual fund is positive news for Israeli investors, allowing them to easily track this digital asset.
