• The Bitcoin mutual funds will allow local investors to access BTC investments using the shekel and will be priced at the market rate of BTC once daily.
• The funds will use various methods to track BTC’s price, including indexes and active management. Some funds will also track prominent U.S. Bitcoin ETFs.

The Israel financial markets will witness six mutual funds tracking the Bitcoin price to debut next week following the recent permission from the Israel Securities Authority (ISA). As per the local news publication Calcalist, all three mutual funds will begin operations on the same day, i.e., December 31.

Bạn đang xem: Israel Greenlights Six Bitcoin Mutual Funds for Launch Next Week

After licensing these new funds last week, the ISA will allow investors to access Bitcoin investments through the local currency, the shekel. These funds will be purchased at the market price of Bitcoin at the time orders are placed, which will occur once daily.

Xem thêm : Top Mutual Fund Strategies for Smart Investors

These news mutual funds will track the Bitcoin price through different methods, including indexes and active strategies. Furthermore, some of these six mutual funds will also track leading U.S. Bitcoin ETFs, such as BlackRock’s iShares Bitcoin Trust ETF (IBIT). One of the funds will be actively managed with the goal of outperforming Bitcoin returns.

Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI will manage these Bitcoin mutual funds with a management fee of 1.5% to 0.25%. The approval from the ISA comes nearly a year after the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs) in the U.S., the world’s largest economy.

Since then, BTC has more than doubled in value, nearing a record high. Meanwhile, U.S. funds have attracted a net $35.6 billion in investor capital. Speaking on the development, a senior executive of an investment house said:

The investment houses have been pleading for more than a year for ETFs to be approved and started sending prospectuses for bitcoin funds in the middle of the year. But the regulator marches to its own tune. It has to check the details.

Growing Demand for Bitcoin Investment Products

Xem thêm : The 10 Biggest Fund Downgrades of 2024

Following the launch of Bitcoin ETF in early 2024, which was a massive success with $35 billion in inflows, demand for Bitcoin investment products has been on the rise, according to CNF. Furthermore, the BTC price rally past $100K levels this year has also encouraged more fund issuers to launch new market products, especially in the second half of 2024.

Strive Asset Management, co-founded by D.O.G.E leader Vivek Ramaswamy, has submitted an application for a new exchange-traded fund (ETF) focused on convertible securities tied to BTC. The Strive Bitcoin Bond ETF aims to capitalize on the growing market for “Bitcoin bonds,” according to a public SEC filing made on Thursday, reported CNF.

On the other hand, the world’s largest crypto asset manager, Bitwise, filed a proposal for a new exchange-traded fund (ETF) targeting publicly traded companies with significant BTC holdings. In the filing submitted on December 26, Bitwise outlined the criteria for inclusion, which include a minimum market capitalization of $100 million, average daily liquidity of at least $1 million, and a BTC reserve of over 1,000 BTC, reported CNF.