For the First Time in Israel: A Bitcoin-Tracking Financial Instrument on TASE UP in the Tel Aviv Stock Exchange
The Tel Aviv Stock Exchange (TASE) launched the first Bitcoin-linked bonds on TASE UP on August 10, 2021, in collaboration with Silver Castle. This three-year bond series is designed for institutional and qualified investors, allowing them to invest in Bitcoin with reduced operational risks. Funds raised will be used exclusively for Bitcoin purchases, with redemption paid in Shekels based on the Bitcoin exchange rate. The initiative marks a significant step in integrating digital assets into the Israeli capital market, enhancing portfolio diversification opportunities for investors.
- Launch of Bitcoin-linked bonds on TASE UP expands investment opportunities for institutional investors.
- The new instrument reduces operational risks associated with direct Bitcoin investments.
- Enhances diversification options for investors' portfolios.
- None.
TEL AVIV, Aug. 10, 2021 /PRNewswire/ -- Digital Currency Investment House, Silver Castle, and The Tel Aviv Stock Exchange Ltd (TASE: TASE) announced today the first-ever issuance of Bitcoin linked and backed bonds on TASE UP. This new channel of investment in Bitcoin creates a pathway for institutional and qualified investors into the digital currency realm and further diversification of their investment portfolio.
The series of bonds issued will have term of three years and will not bear interest. The capital raised in the issuance will be used solely in the purchase of Bitcoin and the monies will be fully exposed to the exchange rate of the Bitcoin. The trading of the bonds will be subject to the rules of TASE UP. The redemption of the Bitcoin will be paid for in Shekels, based on the exchange rate of the Bitcoin on redemption date, less commissions. Weekly early redemption will become available at the end of three months, based on a formula that weights the exchange rate of the Bitcoin on early redemption, less commissions.
The new instrument enables exposure to Bitcoin with significantly reduced operational risks and product holding costs. Until now, Bitcoin could be obtained by way of direct purchase and holding, bitcoin delivery agreements, and Israeli or foreign hedge funds. Starting today, institutional and qualified investors can also purchase Israeli Bitcoin bonds on TASE UP.
The digital currency sector has been gathering momentum in recent years, but despite the wide media coverage is still an emerging sector.
Eli Mizroch, CEO of Silver Castle Investment House, said: "The joint endeavor with TASE and its exposure to the institutional market in Israel is a significant milestone in forming awareness and recognition for the digital assets sector. As significant companies enter the field, we believe that the Israeli capital market is better prepared to participate in the sector and a growing number of companies realize that investment in digital assets contributes to portfolio diversification, without correlation to other assets, offering a substantial profit potential. Technology has changed the way in which we manage our funds and investments, and the new generation of investors influences the format of the market and the channels of investments in companies. The issuance of this novel financial instrument in Israel allows us to catch up with the global market and U.S. institutional investors."
Ittai Ben Zeev, CEO of TASE, said: "The launch of TASE UP allows institutional and qualified investors direct access to new investment opportunities, in both private companies and innovative products, such as Bitcoin-linked bonds, all through a platform that was constructed to resemble the infrastructure of TASE's familiar trading and clearing systems. The investors will enjoy liquidity for investment, listing, clearing and operation of the payments as applicable to a listed security, all as part of TASE's strategy of expanding its range of products and diversifying the pool of investors. We expect to see more private companies and new products list on TASE UP."
About Silver Castle:
Silver Castle, Digital Assets Investment House, was founded in 2018 by Israeli banking and capital market executives, including Zvi Ziv, former CEO of Bank Hapoalim, Gaby Ravid, former CEO of Psagot Investment House, and Eli Mizroch, formerly senior executive in Bank Hapoalim and CEO of Golf. The Investment House specializes in identifying digital currency investment opportunities for institutional and qualified investors.
For additional information: https://www.silvercl.co.il
About TASE UP:
TASE UP is a private platform that operates separately from TASE's public companies' trading platform. This unique platform is designated for institutional and qualified investors, both Israeli and foreign. Companies that are listed on TASE UP are private companies looking to raise funds from the institutional investors and qualified clients. Unlike a public company, they remain private and are not subject to reporting requirements under the Securities Law. TASE UP was constructed to resemble the infrastructure of TASE's trading and clearing systems and is therefore readily accessible and familiar to the institutional investors.
For additional information: https://taseup.tase.co.il/
Contact:
Orna Goren
Head of Communication and Public Relations Unit
Tel: +972 76 8160405
tase.ir@tase.co.il
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SOURCE The Tel Aviv Stock Exchange Ltd.
FAQ
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