Over the past year, the price of Bitcoin has increased by 113% and is now at $94,200, making it once again the center of attention in the financial world. For the first time, Israeli citizens will be able to invest in shekels in products that track Bitcoin. Four mutual fund management companies (IBI-Kessem, Meitav, More, and Migdal) filed prospectuses next week to launch funds that track Bitcoin. Ayalon has filed a prospectus for the managed fund. The prospectus can now be issued after the Israeli Securities Authority agreed to the move last week.
Tracked funds are not continuously traded at this time. Buy and sell orders are executed once a day. According to market participants, in the future, a fund will be launched that will track the price of Bitcoin (or an overseas index invested in Bitcoin) continuously throughout the day, and will be able to trade at any time during the session.
The roots of the changes that brought digital currencies into the mainstream of Israel’s capital markets lie in U.S. regulatory changes earlier this year, when the U.S. Securities and Exchange Commission ordered investment firms in the country to sell ETFs that track Bitcoin as an underlying asset. Allowed settings. You don’t just take a futures contract at that price like you used to.
Bitcoin, which is characterized by high volatility, has recently benefited from a tailwind from US President-elect Donald Trump’s support for cryptocurrencies during the campaign.
In April of this year, the Israeli Securities Authority allowed mutual funds to submit prospectuses to invest in Bitcoin and Ethereum futures contracts through tracking funds. In August, it went a step further by allowing non-bank members of the Tel Aviv Stock Exchange to offer trading and custody services in these currencies.
Published by Globes, Israel Business News – en.globes.co.il – on December 24, 2024.
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