6 Bitcoin Mutual Funds to Launch in Israel

Key Points:

• Israel will launch six Bitcoin mutual funds on December 31, approved by the Israel Securities Authority.
• The funds, managed by firms like Migdal and Meitav, include one actively managed fund aiming to outperform Bitcoin and others tracking its price.

Israel will soon make a giant leap into cryptocurrency investment with six mutual funds pegged against Bitcoin's price listing.

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Israel Approves Launch of Bitcoin Mutual Funds

The Bitcoin mutual funds, which start trading on December 31, got their final green light last week from the Israel Securities Authority, according to Coindesk.

These investment products will be managed by Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI, with management fees ranging between 0.25% and 1.5%, thus providing a wide range of costs for investors.

While most of the Bitcoin mutual funds will track the price of Bitcoin directly, one will be actively managed with the goal of outperforming the market performance of the cryptocurrency. Trading for the funds will initially be once daily, but future offerings may include continuous trading options.

Global Crypto Trends: Israel Joins the Wave

The green light heralds Israel's growing interest in mainstream cryptocurrency investments, besides following broader global trends. Early this year, the U.S. Securities and Exchange Commission okayed spot Bitcoin exchange-traded funds that have, in turn, contributed to a Bitcoin valuation surge.

Bitcoin has more than doubled in price over the past year, close to a record high. At the same time, U.S.-based funds have attracted $35.6 billion of net investor inflows.

The development in Israel is part of the global regulatory trend regarding digital currencies. In Turkey, for instance, stricter AML regulations were enacted recently. Under the new regulations, any user whose crypto transactions exceed 15,000 Turkish liras, or about $425, is supposed to declare their identities to service providers.