Investment firm launches bitcoin-backed bonds on Tel Aviv stock exchange despite regulatory warnings

[ad_1]

A stock market display in the lobby of the Tel Aviv Stock Exchange in central Tel Aviv on March 15, 2020. Photo: Flash90.

CTech – Digital currency investment firm Silver Castle and the Tel Aviv Stock Exchange have announced the first-ever Bitcoin-linked bond issue backed by TASE UP. This new Bitcoin investment channel will create a path for institutional and qualified investors to enter the digital currency arena and further diversify their investment portfolios. However, Calcalist learned that on Wednesday the Capital Market Authority, Insurance and Savings, sent a letter to institutional investors in Israel demanding to report any investment they made in Bitcoin this year and explain their decision to do so. The Authority wrote in its letter that it considers investing in Bitcoin to be speculative, claiming that it has no intrinsic value.

The series of bonds issued by Silver Castle will last for three years and will not bear interest. The capital raised during the issuance will be used for the purchase of Bitcoin, and the money will be exposed at the current exchange rate in shekels, with fewer commissions. Trading in the Bonds will be subject to TASE UP rules. The new financial tool will allow exposure to Bitcoin with significantly reduced operational risks and product holding costs. Until now, Bitcoin could only be obtained through direct buying and holding, Bitcoin delivery agreements, and Israeli or foreign hedge funds.

Silver Castle is a digital asset investment firm, which 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, former senior executive at Banque Hapoalim and CEO of Golf. The company specializes in identifying digital currency investment opportunities for institutional and qualified investors.

TASE UP is a private platform that operates separately from TASE’s public company trading platform, and listed companies are private companies seeking to raise funds from institutional investors and qualified clients. Unlike a public company, they remain private and are not subject to reporting requirements under Israeli securities law.

“Technology has changed the way we manage our funds and investments, and the new generation of investors is influencing market format and investment channels. The issuance of this new financial instrument in Israel will allow us to catch up with the global market and US institutional investors, said Eli Mizroch, CEO of Silver Castle Investment House.

“The launch of TASE UP allows institutional and qualified investors direct access to new investment opportunities, both in private companies and in innovative products, such as Bitcoin bonds. Investors will benefit from liquidity for investments, listing, clearing and the operation of their payments as part of TASE’s strategy to expand its product line and diversify the investor base, Ittai Ben Zeev said, CEO of TASE.

[ad_2]