- Publicly available SEC documents show that e.gwhite Abu Dhabi sovereign wealth fund over a billion Dollars invested in BlackRock’s IBIT.
- It is noteworthy that apart from Abu Dhabi, no other state clearly has any shares in it.
It Documents According to the US Securities and Exchange Commission (SEC), Abu Dhabi fund Mubadala Investment now holds over 12.7 million shares of BlackRock iShares Bitcoin Trust IBIT, which corresponds to a market value of around $630 million. Al Warda Investments has more than 8.2 million shares worth about $408 million.
Both funds increased their positions compared to the previous quarter, with Mubadala increasing particularly significantly. The investments are made in a phase in which the Bitcoin price temporarily fell by more than 30 percent. This suggests a countercyclical, long-term strategy.
The UAE Strategy
The United Arab Emirates has been pursuing the goal of broadening its economy and becoming less dependent on oil revenues for years. Investments in technology and financial innovations play a central role.
Bitcoin ETFs offer institutional investors a chance to participate in Bitcoin price developments without acting as custodians themselves.
For sovereign wealth funds like Mubadala Investment, which are subject to strict compliance rules, a product like IBIT is an attractive access to Bitcoin because of its legal certainty guaranteed by US regulation.
At the same time, the UAE presents itself as a crypto-friendly financial location.
Signaling effect for other global institutions
With over $51 billion TVL, Blackrock IBIT is the largest Bitcoin ETF in the world. The fact that a sovereign state is also among the investors could send a signal to other institutional investors.
The Abu Dhabi engagement shows that Bitcoin is increasingly being viewed as part of strategic portfolios, as an asset class that is gaining institutional acceptance in regulated structures.
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