Israel is preparing 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 true 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 opening the door to new opportunities for Israeli investors wishing to push the limits of diversification.
An investment revolution 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 the movements of bitcoin through various indices and strategies, mark a pivotal step. Among them, some will be modeled on international ETFs, such as BlackRock's iShares Bitcoin Trust (IBIT).
The launch of these financial products is the result of several years of effort on the part of local asset managers.
Names like 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 a desire 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 outperforming the intrinsic performance of bitcoin. This boldness reflects a proactive approach, aimed at attracting investors hungry for higher returns, even on such a volatile asset.
A springboard for Bitcoin in Israel
This progress comes in a 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 while stimulating banking competition.
However, the introduction of Bitcoin funds illustrates a complementary strategy: offering a bridge between traditional assets and cryptos.
Unlike direct purchases of bitcoin, these funds allow investors to benefit from exposure to the crypto market while remaining within a regulated framework. Additionally, the link to the Israeli shekel greatly simplifies transactions for residents.
This opening to Bitcoin also responds to a growing demand from investors for solutions integrating digital assets. Eyal Haim, vice president of Ayalon Mutual Funds, emphasizes: “For years, we have been seeking to position ourselves in the crypto ecosystem. 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 boldly betting on bitcoin.
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