The Abu Dhabi Investment Council (ADIC) significantly boosted its exposure to Bitcoin in the third quarter, adding weight to growing signs that institutional demand for digital assets is accelerating across the United Arab Emirates.
According to a Bloomberg report, ADIC increased its holdings of BlackRock’s spot Bitcoin ETF, IBIT, from 2.4 million shares to nearly 8 million by the end of the quarter.
The investment arm of Mubadala Investment Company said it views Bitcoin as “the digital equivalent of gold,” underscoring a long-term thesis despite recent market turbulence.
The period coincided with substantial volatility in Bitcoin prices, which surged to an all-time high of $125,100 on Oct. 5 before dropping back below $90,000 this week.
IBIT Declines Sharply After Bitcoin Drawdown
IBIT ended the third quarter at $65 per share before rising to $71 on Oct. 6, a day after Bitcoin reached its latest peak.
However, Bitcoin’s subsequent pullback has weighed heavily on the ETF, which closed Wednesday at $50.71 — a drop of around 23% since the end of Q3.
IBIT’s performance has reflected broader turbulence in crypto markets, with the ETF down 19.39% over the past month.
Despite the downturn, market participants interpreted ADIC’s increased investment as a strong vote of confidence in the long-term viability of Bitcoin as an institutional asset.
Industry Figures Welcome UAE’s Expanding Participation
Zayed Aleem, M2’s treasury manager, praised the development, saying it is “fantastic to see such institutional conviction and another strong signal that the UAE is securing its place as a global hub for digital assets.”
Crypto commentator MartyParty echoed the sentiment, stating that “the position reflects a strategic bet on BTC’s role as a store of value.”
The timing of the news was notable, arriving one day after IBIT registered its largest daily outflows since launching in January 2024, with $523.2 million withdrawn as Bitcoin briefly dipped to $88,000.
ETF Analysts Highlight Challenging Conditions
ETF analyst Eric Balchunas remarked that the fund was experiencing an “ugly stretch,” although he noted that year-to-date flows remain strong at more than $25 billion, ranking IBIT among the highest inflow ETFs of the year.
Over the past month, Bitcoin ETFs collectively recorded $3.3 billion in outflows, equal to roughly 3.5% of their total assets under management.
Since its launch, IBIT has still accumulated around $63.12 million in net inflows, demonstrating sustained interest despite current volatility.
Analysts remain divided on Bitcoin’s near-term trajectory, with some suggesting the market is entering an accumulation zone.
Bitcoin analyst VICTOR described the current decline as “the close your eyes and bid type of range,” signaling that some market participants see opportunity at current levels.