Israel has authorized the introduction of six Bitcoin mutual funds on December 31

Israel has recently authorized the launch of six Bitcoin mutual funds on December 31, providing investors with a regulated entry point into the Bitcoin market.

On December 31, the Israel Securities Authority (ISA) has authorized the implementation of six Bitcoin mutual funds. Bitcoin-focused mutual funds will be accessible to Israeli investors for the first time.

Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI will all simultaneously launch the funds in accordance with regulators’ requirements. One fund distinguishes itself by actively managing its portfolio to surpass Bitcoin’s market performance, while management fees are established at 0.25% to 1.5%.

Transactions will be restricted to a single transaction per day for the time being, although future funds may permit continuous trading operations.

For more than a year, investment firms have been pleading for this opportunity. The investment institutions have been advocating for the approval of ETFs for over a year and began distributing prospectuses for Bitcoin funds in the middle of the year.

However, the regulator adheres to its own schedule. “It is necessary to verify the specifics,” stated an anonymous investment executive to Calcalist. This is consistent with the United States, where the Securities and Exchange Commission (SEC) authorized spot Bitcoin exchange-traded funds (ETFs) in January of last year.

Bitcoin’s value has doubled, reaching over five new all-time highs this year, while those funds have attracted $35.6 billion in capital.

For years, Israel’s crypto industry has been simmering beneath the surface. Around 174 crypto-focused companies, which employ 3,800 individuals, are located in the so-called “Start-Up Nation.” These companies specialize in areas such as algorithmic trading and blockchain development.

regulatory obstacles have impeded market growth, despite the innovation. Israeli institutions continue to maintain a high level of skepticism regarding cryptocurrency transactions, citing concerns regarding compliance and money laundering.

It is a disaster for investors to conform with tax regulations, as many institutions refuse to process funds derived from crypto. In January, the Israel Tax Authority (ITA) implemented a temporary measure that enables taxpayers to report crypto profits through special accounts.

The extension of that measure until December 31 is a temporary solution to a much more significant issue. In addition to Bitcoin mutual funds, Israel has also invested in Central Bank Digital Currencies (CBDCs).

The Bank of Israel has been developing a digital shekel, releasing an architecture paper earlier this year and launching a prototype environment in May. Israel is in a stable economic position.

In Q2 2024, the nation achieved a $4.96 billion current account surplus as a result of robust investment inflows and exports. By the conclusion of the year, analysts anticipate that the surplus will increase to $7.8 billion.

Also Read: Binance endorses the Bitcoin Payment Pilot Proposal in Thailand