Abu Dhabi’s sovereign wealth fund substantially increased its investment in BlackRock’s spot Bitcoin exchange-traded fund, IBIT, in the third quarter, demonstrating enduring institutional confidence in the digital asset despite recent market volatility.
The Abu Dhabi Investment Council (ADIC), an independent unit of Mubadala Investment Company, more than tripled its stake. It boosted its holdings from 2.4 million shares to nearly 8 million shares by the close of September 30.
This significantly enlarged position was valued at approximately $518 million at the time it was disclosed in a regulatory filing. The increase represents a surge of over 230% in ADIC’s investment.
The revelation of this major investment comes as Bitcoin has experienced a significant price correction. The cryptocurrency has fallen below $90,000, representing a 30% drop from its peak of $126,000 reached just last month.
ADIC’s decision to increase its Bitcoin exposure, coinciding with a period of market enthusiasm shortly before a major sell-off, underscores a long-term investment strategy. It highlights the fund’s resolve in navigating a volatile market, reflecting a belief in Bitcoin’s enduring value.
ADIC, which manages hundreds of billions of dollars, plays a crucial role in diversifying the United Arab Emirates’ oil reserves. The fund has shown a growing interest in digital assets as part of its investment strategy.
BlackRock’s IBIT is recognized as one of the world’s largest cryptocurrency exchange-traded funds. It has attracted record inflows since its launch in January 2024.
This move by Abu Dhabi’s fund reinforces a broader trend among Persian Gulf sovereign funds seeking exposure to digital assets. Such regulatory disclosures provide insight into the strategies of these global financial powerhouses.
Other institutional investors, including the sovereign fund of Luxembourg and the state retirement fund of Michigan in the United States, have also invested in U.S. spot Bitcoin ETFs. These ETFs have collectively accumulated over $590 million in assets under management since their debut.