Key Points
- Six Israeli investment houses are simultaneously launching Bitcoin-tracking mutual funds on December 31, 2024, following approval from the Israel Securities Authority, marking a significant milestone in cryptocurrency investment accessibility in Israel.
- Bitcoin’s price has surged to approximately $98,000, representing a 120% increase since the beginning of 2024, with the cryptocurrency’s adoption by institutional investors and regulatory approvals playing crucial roles in its growth.
Regulatory Breakthrough and Fund Structure
As reported by the Israeli news website Calcalist, the Israel Securities Authority has granted final approval for six investment houses to launch Bitcoin mutual funds, following a two-year lobbying effort. The funds will employ various strategies, with some tracking BlackRock’s IBIT ETF, others following S&P or Chicago Stock Exchange indices, and one fund taking an active management approach aimed at outperforming Bitcoin’s price movements. The synchronized launch date of December 31 was mandated by regulators to ensure market fairness.
Global Context and Institutional Adoption
According to Eyal Haim, Vice President of Ayalon Mutual Funds, retail investors now hold approximately 10% of global Bitcoin balances, up from 6.5% in early 2020. The U.S. government itself holds $20 billion worth of Bitcoin, while BlackRock’s IBIT manages $54 billion. The SEC’s approval of Bitcoin ETFs and options trading in early 2024 has significantly contributed to institutional adoption and price appreciation.
Market Perspectives and Timing Considerations
Industry sources revealed to Calcalist that executives expressed some regret about the timing of the launch, noting that earlier approval could have allowed Israeli investors to benefit from Bitcoin’s substantial gains in 2024. IBI Mutual Funds’ Deputy CEO Eyal Goren addressed concerns about potential market timing, stating, “Investment houses are platforms meant to provide investors with simple access to the assets they wish to purchase.” He noted that skepticism about Bitcoin’s valuation has persisted throughout its rise from $1,000 to its current level near $100,000.
