Abu Dhabi’s Sovereign Fund Invests $436 Million in BlackRock’s Bitcoin ETF

Abu Dhabi’s Mubadala Sovereign Wealth Fund has taken a bold step into the Bitcoin market, investing $436 million in US-listed spot Bitcoin exchange-traded funds (ETFs).

This acquisition, revealed in a February 14 filing with the SEC, highlights the national fund’s growing interest in digital assets.

Abu Dhabi’s Mubadala Becomes Seventh-Largest Holder of BlackRock’s Bitcoin ETF

Mubadala’s filing shows that its investment was directed at BlackRock’s iShares Bitcoin ETF (IBIT), securing over 8.2 million shares in the fourth quarter of 2024. This marks a fresh position for the fund, as no previous holdings of IBIT were reported in earlier filings.

Following this acquisition, Bloomberg ETF analyst James Seyffart noted that Mubadala now ranks as the seventh-largest known holder of IBIT.

The fund joins an elite list of institutional investors, trailing major firms such as Goldman Sachs, Millennium Management, and Symmetry Investments.

BlackRock’s IBIT Top Institutional Holders. Source: X/James Seyffart

Meanwhile, Binance founder Changpeng Zhao noted that Mubadala is only one of Abu Dhabi’s sovereign wealth funds. He suggested that other state-backed investment entities might also have exposure to Bitcoin ETFs.

Market observers also pointed out that Mubadala’s investment aligns with the UAE’s broader push to establish itself as a leading blockchain and digital asset innovation hub. Over the years, Abu Dhabi has positioned itself as a prime destination for firms looking for supportive investment conditions.

This has resulted in the introduction of progressive regulations that have attracted major industry players seeking a crypto-friendly jurisdiction.

The Global Bitcoin Adoption Race

Mubadala’s investment reflects a growing trend among global institutions seeking Bitcoin exposure.

This shift comes as policymakers consider the potential for a strategic crypto reserve. Some in the US government have suggested that Bitcoin could be part of this initiative.

US Senator Cynthia Lummis underscored the significance of Mubadala’s development, suggesting that a global race for Bitcoin exposure was unfolding.

“I told you the race was on. It’s time for America to win,” Lummis wrote on X (formerly Twitter).

The lawmaker has introduced the Bitcoin Act of 2024, proposing the creation of a US Bitcoin reserve. The plan involves selling a portion of the government’s gold holdings to fund the purchase. If enacted, it would secure 1 million Bitcoin, roughly 5% of the total supply.

While the federal government’s stance remains uncertain, several US states have taken independent steps to integrate Bitcoin into their financial policies. Over 20 states have either proposed or enacted legislation to facilitate cryptocurrency investments.

US States Bitcoin Reserve Legislative Moves. Source: Bitcoin Reserve Monitor

Industry leaders view these developments as a sign of a global race for Bitcoin adoption. Satoshi Act Fund CEO Dennis Porter emphasized that US states are driving this shift. Considering this, analysts expect the country to emerge as a leading pro-Bitcoin nation.