Israel is poised to launch six Bitcoin-linked mutual funds on December 31, a move that signals a significant development in the country’s crypto investment landscape. According to reports from local media outlets Calcalist and Globes, the funds will be introduced by Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI.
The Israel Securities Authority (ISA) recently granted approval for these funds, which will initially operate with single daily transactions. However, future iterations may incorporate continuous trading capabilities. This approval reflects Israel’s growing confidence in digital asset investments and demonstrates the country’s alignment with global trends in integrating crypto products into traditional financial frameworks.
The launch of these mutual funds comes at a time when crypto-based exchange-traded funds (ETFs) have experienced significant success. In the United States, spot Bitcoin ETFs have seen rapid growth since their approval in 2023, accumulating billions in investor inflows and solidifying their position as prominent financial products in the sector.
Data from SoSoValue reveals that these funds have garnered total inflows of $35 billion and collectively manage assets exceeding $100 billion. BlackRock’s iShares Bitcoin Trust (IBIT) leads this burgeoning market. Analysts forecast a promising future for crypto ETFs, with projections of a substantial boom in 2025 driven by potential changes in SEC leadership.
Experts anticipate the introduction of ETFs linked to major cryptocurrencies like Litecoin, Solana, and XRP, although some may encounter regulatory hurdles. Coinbase has also highlighted the potential for innovation in the ETF space, including advancements in mechanisms such as in-kind creations and redemptions. These enhancements could enhance efficiency and reduce costs, strengthening ETFs as a fundamental component of the evolving crypto ecosystem.
As Israel prepares to launch Bitcoin-linked mutual funds, the country is poised to embrace the growing trend of digital asset investments. This move reflects a broader shift towards integrating cryptocurrencies into traditional financial systems, highlighting Israel’s readiness to adapt to the changing landscape of finance.