Israel is about to shake up its financial sector with an announcement that will not go unnoticed: six bitcoin funds will soon see the light of day. This is not just a regulatory step forward, but a real statement of intent, a bold step towards the future of investing. Here, Bitcoin is no longer content to be a technological curiosity; it becomes a strategic ally, a key that opens the door to new opportunities for Israeli investors who want to push the boundaries of diversification.
An investment revolution is underway
From December 31, Israeli banks and investment companies will offer these new funds to their clients. An unprecedented fact for a market often perceived as conservative. These funds, which will track bitcoin movements through various indices and strategies, represent a key step. Some of these will be modeled after international ETFs such as BlackRock’s iShares Bitcoin Trust (IBIT).
The introduction of these financial products is the result of several years of efforts by local asset managers.
Names such as Phoenix Investment, Migdal and IBI-Kessem are now establishing themselves as pioneers in this segment. Management fees ranging between 0.25% and 1.5% show an effort to make these investments accessible while respecting the usual cost structure.
But that’s not all: one of the funds will be actively managed in the hope of beating bitcoin’s intrinsic performance. This boldness reflects a proactive approach aimed at attracting investors hungry for higher returns, even in such a volatile asset.
Bitcoin stepping stone in Israel
This progress comes in the broader context of digital transformation in Israel. With the launch of the Digital Shekel Challenge, the Bank of Israel is working to integrate its own central bank digital currency (CBDC). This ambitious project aims to modernize payment systems and at the same time stimulate banking competition.
However, the introduction of bitcoin funds illustrates a complementary strategy: it offers a bridge between traditional assets and cryptocurrencies.
Unlike direct purchases of Bitcoin, these funds allow investors to benefit from exposure to the crypto market while remaining within a regulated framework. In addition, the connection to the Israeli shekel significantly simplifies transactions for residents.
This opening of Bitcoin also responds to the growing demand from investors for solutions integrating digital assets. Eyal Haim, Vice President of Ayalon Mutual Funds, emphasizes: “We have been striving for a position in the crypto ecosystem for years. These funds are a natural response to this ambition. »
With the market capitalization of Bitcoin ETFs already reaching global highs, the movement started in Israel could pave the way for even wider adoption in the region. Meanwhile, Moscow is making a bold bet on Bitcoin.
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Fascinated by Bitcoin since 2017, Evariste continued to research the topic. If his first interest was trading, now he is actively trying to understand all the developments focused on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the industry as a whole.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.