Israel Greenlights Bitcoin Mutual Funds as Crypto Adoption Expands

Israel is making strides in the crypto sector with its securities regulator approving six Bitcoin mutual funds, managed by firms like Migdal Capital Markets and Phoenix Investment.

Unlike Bitcoin ETFs, which trade throughout the day, these funds operate on a set daily net asset value (NAV), leading to higher management fees. This marks another step toward mainstream adoption of Bitcoin in traditional finance.

While demand in Israel remains uncertain, the success of U.S. Bitcoin ETFs—pulling in over $40 billion since launch—suggests a strong appetite for such investment vehicles.

The country is already a major player in blockchain innovation, home to over 174 crypto startups, including industry giants like eToro and StarkWare.

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Recent funding rounds have injected over $100 million into Israeli crypto firms, pushing total investments beyond $3 billion.

Regulatory clarity has given Israel an edge, with tax policies on digital assets established as early as 2018—far ahead of many other nations. This stability has encouraged both institutional participation and startup growth.

Alexander Stefanov