Key Notes
- Abu Dhabi has bought $436.9 million worth of Bitcoin from IBIT.
- The government made this acquisition through the Mubadala Investments.
- Industry leaders are optimistic this might set a precedent for other sovereign wealth funds.
In a significant move, the Abu Dhabi government has made a major investment in Bitcoin BTC $96 304 24h volatility: 1.2% Market cap: $1.91 T Vol. 24h: $16.85 B . According to the 13F filing lodged with the US Securities and Exchange Commission (SEC), the United Arab Emirates (UAE) capital has put a massive $436.9 million into BlackRock’s iShares Bitcoin Trust (IBIT).
The government made this investment through Mubadala Investments, one of Abu Dhabi’s sovereign wealth funds. The move shows that the city-state is expanding its interest in digital assets.
A Historic Investment by a Sovereign Wealth Fund
This is the first time a sovereign wealth fund has directly invested in Bitcoin. Former Binance CEO Changpeng Zhao hinted that other Abu Dhabi-based sovereign wealth funds might follow Mubadala’s example soon.
His comments suggested it could set a precedent if more regional institutions allocate capital to Bitcoin. This could influence other sovereign wealth funds globally. Notably, this aligns with the growing trend of institutional investors increasing their exposure to digital assets.
Mubadala’s investment is part of a larger trend where big institutions adopt Bitcoin and other digital assets. Governments and financial companies are now increasingly using blockchain and cryptocurrencies in the Middle East.
While this is a significant investment, it is not Abu Dhabi’s first foray into digital assets. Last August, Coinspeaker reported that the UAE had the third-highest rate of crypto adoption. This growth is driven by its pro-crypto regulations.
In 2023, the city also invested in Bitcoin mining. It partnered with major Bitcoin miners such as MARA Holdings and Zero Two to set up a large-scale mining complex. Abu Dhabi’s decision to launch a regulated Bitcoin ETF shows how digital assets are becoming part of traditional finance.
With more institutional funds going into Bitcoin ETFs and sovereign wealth funds investing in crypto, Abu Dhabi’s move could guide other global institutions. The regional government’s investment is not just about making quick profits; it shows a long-term belief that Bitcoin will play a big role in finance.
Beyond CZ, other top Bitcoin advocates like Anthony Pompliano have also commented on the move. In an X post , Pompliano stated that this investment aligns with the idea of a U.S. Strategic Bitcoin Reserve.
Abu Dhabi’s sovereign wealth fund just revealed they are buying hundreds of millions of dollars in bitcoin and people still think the United States won’t buy bitcoin.
The Strategic Bitcoin Reserve is happening.
Just a matter of time.
— Anthony Pompliano 🌪 (@APompliano) February 14, 2025
He believes Abu Dhabi’s purchase might hasten the United States to consider adding Bitcoin to its strategic reserves.
Bitcoin Price Reacts to the News
After the announcement, Bitcoin’s price rallied by over 2%, reaching $97,700. Many investors saw this as a sign that institutional players take Bitcoin seriously.
BlackRock Inc (NASDAQ: BLK), the world’s largest asset manager, operates the biggest spot Bitcoin ETF, managing nearly $56 billion in assets.
The timing of this investment is significant because BlackRock recently received a license to operate in Abu Dhabi. This move may further strengthen the asset manager’s presence in the region.
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