Next week, six new Bitcoin-tracking funds will launch in Israel, following approval from the Israel Securities Authority. These funds will be available for purchase at banks and investment firms starting December 31.
Fund Launch Details
The funds will mirror Bitcoin's price movements through various indices and strategies. Some will track exchange-traded products launched in the US, such as BlackRock's Bitcoin Trust ETF. One of the funds will be actively managed to outperform the cryptocurrency.
Active Management and ETF Market
As of December 25, the combined market capitalization of all Bitcoin ETFs is approximately $143.2 billion. Behind the new funds are Israeli mutual fund managers: Phoenix Investment, IBI-Kessem, Meitav, More, Ayalon, and Migdal. Management fees will range from 0.25% to 1.5%.
Digital Shekel Project
Since May, Israel has been working on its central bank digital currency (CBDC) — the digital shekel, through a new initiative called the 'Digital Shekel Challenge.' The project invites participants to develop real-time payment systems using the digital shekel, with the Bank of Israel providing a sandbox environment for testing. A key goal is to enhance competition with local banks, although there are concerns about privacy.
The launch of new Bitcoin-tracking funds in Israel and the development of the digital shekel highlight the country's active efforts to integrate digital currencies and technologies into its financial system.
