A total of six mutual funds that track the value of bitcoin are set to launch in Israel next week, following the Israel Securities Authority's approval of these products, as reported by Calcalist on Wednesday. The launch is scheduled for December 31, as mandated by the regulator, with all six funds commencing operations on the same day. The final approval for these funds was granted the previous week. The funds will be managed by prominent financial institutions, including Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI, with management fees varying between 0.25% and 1.5%.
One of the funds will be actively managed, aiming to outperform bitcoin's returns. Initially, the funds will transact only once daily, although future products are expected to facilitate continuous trading, as stated in a Globes report citing market sources.
The Israel Securities Authority's approval comes nearly a year after the US Securities and Exchange Commission approved spot bitcoin exchange-traded funds in the US, during which time the world's largest cryptocurrency has more than doubled in value, nearing a record high. The US-based funds have attracted a net inflow of $35.6 billion from investors. As stated by a senior executive at an investment house, 'The investment houses have been seeking approval for ETFs for over a year and started submitting prospectuses for bitcoin funds mid-year. However, the regulator operates at its own pace, carefully examining the details.'