It was disclosed that Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, has made a substantial investment of approximately $436.9 million in Bitcoin exchange-traded funds (ETFs). This significant purchase marks one of the largest allocations to Bitcoin-related financial products by a sovereign fund to date.
The investment was confirmed through a regulatory filing and encompasses shares in BlackRock’s iShares Bitcoin Trust (IBIT), which has emerged as the leading spot Bitcoin ETF with around $56 billion in assets under management. This strategic move coincided with BlackRock obtaining a commercial license to operate within Abu Dhabi, highlighting the increasing institutional interest in digital assets in the region.
The acquisition of over 8.2 million shares of IBIT represents about 0.14% of Mubadala’s total assets under management, which amount to approximately $302 billion. This investment reflects a broader trend among sovereign wealth funds in the Middle East as they explore diversification strategies that include cryptocurrencies.
Following the announcement of this investment, Bitcoin’s price reacted positively, experiencing a surge of over 7% shortly after the news broke. The trading volume also increased significantly, indicating heightened market activity and interest.
This latest development is part of Abu Dhabi’s ongoing efforts to establish itself as a key player in the cryptocurrency landscape. The emirate has previously invested in Bitcoin mining initiatives and is actively working to integrate digital assets into its financial ecosystem. As institutional adoption of cryptocurrencies continues to grow, this move positions Abu Dhabi alongside other global investors looking to capitalize on the evolving digital asset market.
