KeyTakeaways:
- Israel launches six Bitcoin mutual funds tracking BlackRock ETF on Dec. 31.
- Funds will provide diverse Bitcoin exposure with fees ranging from 0.25% to 1.5%.
- Bitcoin price gains momentum, with analysts predicting a potential rally to $160,000 by 2025.
Israel is set to enter the Bitcoin mutual fund market with the debut of six new investment products, marking a development in the country’s digital asset space. The launch follows the approval granted by the Israel Securities Authority (ISA) and is expected to occur on Dec. 31.
This move mirrors the rapid growth of spot Bitcoin exchange-traded funds (ETFs) in the U.S., which have gained massive traction over the past year.
Overview of the Israeli Bitcoin Funds
The six Bitcoin mutual funds will track the price of Bitcoin (BTC) and will begin operations by the end of the year. According to local reports, these funds will be managed by several leading Israeli firms, including Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI. One of the funds will track the BlackRock Bitcoin ETF, which offers exposure to U.S.-based Bitcoin investments.
These funds are structured to provide a wide range of investors access to Bitcoin, a market that has seen considerable interest since the introduction of spot Bitcoin ETFs in the U.S. in 2023. While initially, these funds will only trade once a day, there are plans for future products to allow continuous trading.
Fees and Active Management
The management fees for the new Israeli funds will vary, ranging from 1.5% to 0.25%. One of the funds will be actively managed, to outperform Bitcoin’s price performance. This strategy reflects growing investor demand for actively managed products seeking higher returns in digital assets.
These fees are in line with the broader trend of spot Bitcoin ETFs, which have become popular in the U.S. With more than $35.6 billion in assets under management (AUM) within the first few months of launch, the funds’ success has inspired other markets, such as Israel, to enter the space.
Bitcoin and Crypto Market Trends
Bitcoin is currently priced at approximately $98,583.53, reflecting a 2.13% increase in the last 24 hours. Despite this positive movement, it remains below its all-time high of around $108,000.
As analysts predict a potential rally to $160,000 by 2025, the excitement surrounding Bitcoin’s prospects is palpable. However, some market figures, such as Peter Schiff, continue to express concerns about the long-term price trajectory of Bitcoin.
This launch of Bitcoin mutual funds in Israel signals a broader trend of mainstream adoption for crypto investment products. With growing interest and global adoption, Israel’s foray into Bitcoin funds could pave the way for further regional digital asset developments.
