Cryptocurrency News: Bitcoin-Tracking Mutual Funds Set to Debut in Israel
Regulatory Approval
Six mutual funds tracking the price of Bitcoin (BTC) are set to debut in Israel next week, following permission from the Israel Securities Authority (ISA). The funds will start operations on December 31, as per the condition imposed by the regulator, and final approval was granted last week.
Fund Details
The funds will be offered by six investment companies: Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI. Management fees will range from 1.5% to 0.25%. One of the funds will be actively managed, attempting to beat Bitcoin’s performance.
Initial Trading
The initial trading for these funds will take place just once a day, although future products will have the ability to trade continuously, as reported by Globes, citing market sources.
Competition and Industry Development
The ISA’s approval comes almost a year after the U.S. Securities and Exchange Commission (SEC) greenlit spot Bitcoin exchange-traded funds (ETFs) in the world’s largest economy. Since then, the world’s largest cryptocurrency has more than doubled, trading near a record high. In the United States, funds tracking Bitcoin’s price have gathered a net $35.6 billion in investor cash.
Industry Insights
According to a senior executive at an investment house, the industry has been seeking ETF approval for more than a year, sending prospectuses for Bitcoin funds mid-year. "The regulator marches to its own tune. It has to check the details," the executive noted.
FAQs
Q: When are the Bitcoin-tracking mutual funds set to debut in Israel?
A: The funds are set to debut next week.
Q: Who will be offering these funds?
A: Six investment companies will be offering these funds: Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI.
Q: What are the management fees for these funds?
A: The management fees will range from 1.5% to 0.25%.
Q: How often will these funds initially trade?
A: The initial trading for these funds will take place just once a day.
Q: What is the industry reaction to this news?
A: The industry has been seeking ETF approval for more than a year, with senior executives commenting that the regulator needs to thoroughly check the details before granting approval.
