Six Bitcoin
Mutual Funds to Debut in Israel Next Week: Report
The Israel Securities Authority approval was granted last week, Calcalist reported.
1. **Summary:**
Six bitcoin mutual funds will be launched in Israel on Dec. 31 after receiving approval from the Israel Securities Authority. The funds will be offered by various companies with management fees ranging from 0.25% to 1.5%. One of the funds will be actively managed, aiming to outperform bitcoin’s performance. The regulator’s approval comes amid a significant rise in bitcoin’s value.
2. **Key Insights:**
– Six mutual funds tracking bitcoin’s price will be introduced in Israel on the same day, Dec. 31, following approval from the Israel Securities Authority.
– The funds will be provided by companies such as Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI, with management fees varying from 0.25% to 1.5%.
– One of the funds will adopt an active management strategy to try to beat bitcoin’s performance.
– The funds will initially transact once a day, with potential for continuous trading in future iterations.
– The approval by the ISA contrasts with the U.S. Securities and Exchange Commission’s approval of spot bitcoin exchange-traded funds (ETFs) about a year earlier, showing a different regulatory approach.
– The U.S. bitcoin funds have seen substantial investor interest, amassing $35.6 billion in net cash inflows.
– Investment houses in Israel have been pushing for bitcoin funds for over a year, with the regulator scrutinizing details before granting approval.
– The author, Sheldon Reback, has extensive experience in journalism and a background in industrial chemistry and an MBA.
