Israel Approves Six Bitcoin Mutual Funds Launching December 31

Israel is preparing to debut six bitcoin mutual funds on December 31, marking a pivotal moment for the nation’s growing cryptocurrency market. The funds, approved by the Israeli Securities Authority, reflect the increasing demand for regulated investment options in digital assets. This launch is anticipated to enhance Israel’s standing in the global crypto economy while providing local investors with new opportunities to participate in the market.

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The investment houses behind this initiative—Meitav, IBI, Migdal Capital Markets, More, Ayalon, and Phoenix Investment—are some of the country’s most prominent financial firms. They have been advocating for over a year to bring exchange-traded bitcoin products to the market. However, regulatory caution slowed the process. “The regulators have been thorough in their reviews, ensuring every detail is in place before moving forward,” an investment executive told Calcalist.

Management fees for these funds are expected to range up to 1.5%, making them competitive within the global landscape. This comes as bitcoin mutual funds and ETFs gain traction internationally, with the United States leading the charge. For instance, BlackRock’s iShares Bitcoin Trust ETF (IBIT) has attracted significant interest, contributing to a record $475.2 million in net inflows for U.S. bitcoin ETFs on December 26.

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Hong Kong is also expanding its crypto offerings, including spot bitcoin and ether ETFs, which saw daily trades surge to $26.3 million in November following steady growth throughout the year. However, experts point to barriers in accessibility that limit trading volume and assets under management. “Broader access to these products is key to unlocking their full potential,” said Jupiter Zheng, partner at Hashkey Capital Liquid Fund.

For Israel, this launch represents more than just financial products—it signals a shift in the country’s investment culture. With institutional adoption on the rise and regulatory frameworks maturing, Israeli investors are increasingly embracing digital assets. The new funds could act as a gateway for retail and institutional players to explore the potential of bitcoin without directly holding the asset.

Financial experts believe the move could encourage further innovation in Israel’s fintech and blockchain sectors, strengthening its reputation as a tech-forward nation. As the global cryptocurrency market continues to evolve, Israel’s proactive approach may position it as a regional leader in regulated digital asset investments.

For investors looking to diversify their portfolios or enter the crypto space with reduced risk, these bitcoin mutual funds offer a promising starting point. With the December 31 launch date on the horizon, all eyes are on how this development will shape the future of Israel’s financial markets.

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