Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, has made a major move into the cryptocurrency market with an investment of around $436 million in BlackRock’s iShares Bitcoin Trust ETF (IBIT). This strategic investment, disclosed in a recent U.S. Securities and Exchange Commission (SEC) filing, positions Mubadala among the top institutional holders of the IBIT.
Mubadala Becomes a Leading Bitcoin ETF Holder
During Q4 2024, Mubadala acquired over 8.2 million shares of the IBIT, marking its first venture into Bitcoin ETFs. This acquisition has made Mubadala the seventh-largest known holder of IBIT, overtaking prominent U.S. banks like PNC and BNY Mellon.
Launched in January 2024, the IBIT has rapidly become a favored investment vehicle for institutions looking to gain Bitcoin exposure. It now manages more than $55 billion in assets, showcasing strong demand from large-scale investors.
Institutional Interest in Crypto Continues to Grow
Mubadala’s investment reflects a broader trend of increasing institutional adoption of cryptocurrencies. Other major players, such as the State of Wisconsin Investment Board and Tudor Investment Corp, have also expanded their Bitcoin ETF holdings recently.
- The State of Wisconsin Investment Board more than doubled its holdings to 6 million shares.
- Hedge fund Tudor Investment Corp increased its stake to 8 million shares, valued at approximately $426.9 million by the end of December 2024.
These developments indicate a growing confidence in the long-term potential of digital assets among institutional investors.
A Sign of Abu Dhabi’s Digital Ambitions
Mubadala’s investment underscores Abu Dhabi’s commitment to establishing itself as a global hub for digital assets and blockchain technology. The United Arab Emirates has been actively creating a favorable environment for blockchain and cryptocurrency initiatives, aiming to attract global investors and innovators.
Crypto Market Growth in 2024
The timing of this investment aligns with a period of significant growth in the cryptocurrency market. In 2024, Bitcoin surged past the $100,000 mark, driven by:
- The approval of Bitcoin ETFs by the SEC
- Favorable macroeconomic conditions
- Interest rate reductions by major central banks
As of February 15, 2025, BlackRock Inc. (BLK) shares are trading at $973.92, down 0.66% from the previous close. Bitcoin (BTC) is currently priced at $96,197, marking a decline of approximately 1.39% from its prior close.
Mubadala’s significant investment in BlackRock’s Bitcoin ETF could inspire other sovereign wealth funds and institutional investors to explore similar ventures, further solidifying cryptocurrencies’ role in global finance.
