Key Developments
- •Abu Dhabi tripled its IBIT holdings during sharp swings in Bitcoin.
- •ETF values fell, but institutional buying in the UAE increased.
- •The emirate expanded digital asset plans through major investments.
Increased Bitcoin Exposure
Abu Dhabi’s sovereign wealth arm expanded its Bitcoin exposure during the third quarter, tripling its position in BlackRock’s iShares Bitcoin Trust (IBIT).
The move came during one of Bitcoin’s most volatile periods of the year. The asset fell from a record high of $125,100 in early October to below $90,000 this week, a correction that pushed IBIT down nearly 23% at the end of the third quarter.
Institutional Allocation Expands Amid Sharp Price Swings
According to Bloomberg data, the Abu Dhabi Investment Council (ADIC) increased its holdings from the previous quarter, raising the value of its stake to an estimated $518 million by the end of September.
ADIC, operating under Mubadala Investment Company, affirmed its long-term view and classified Bitcoin as a digital equivalent to gold.
The company also held 8.7 million IBIT shares valued at $567 million during the same period. The prolonged accumulation placed Abu Dhabi among the most prominent institutional buyers in the ETF sector.
Additionally, Bitcoin’s retreat below $100,000 pressured ETF valuations, sending IBIT to $50.71, a decline of around 23% since the end of the third quarter.
In an X post, ETF analyst Eric Balchunas stated that IBIT has entered an “ugly stretch,” with $3.3 billion in total outflows across U.S. Bitcoin ETFs over the past month. He pointed out that year-to-date flows remain strong at roughly +$25 billion, but the recent pullback has reduced aggregate assets by about 3.5%.
Broader Strategy Builds Out Abu Dhabi’s Digital-Asset Ambitions
Abu Dhabi’s latest moves reflect a broader push to strengthen its position within international digital-asset markets. The emirate oversees more than $1.7 trillion through multiple sovereign funds, and senior officials regard Bitcoin as a key component of its long-term investment strategy.
In addition, MGX, a technology investment firm supported by Mubadala, recently acquired a $2 billion stake in Binance through a stablecoin linked to the Trump family.
Abu Dhabi has been accelerating its digital-asset plan at an ever-increasing rate in a bid to compete with other well-established financial hubs. Moreover, the change of leadership at ADIC further promoted its internationalisation endeavors. The council recruited new executives who had experience in large pension funds in North America and Australia.