Abu Dhabi Sovereign Wealth Funds Keep Big Bitcoin Positions

Bitcoin is the most important asset in two of Abu Dhabi sovereign wealth funds, according to regulatory filings.

Abu Dhabi’s Mubadala Investment Company disclosed Friday that it held a $490 million stake in BlackRock’s iShares Bitcoin Trust — the second-largest single holding across its entire 13F portfolio.

And a Thursday filing from the Abu Dhabi Investment Council, another state-run fund, revealed a $273.6 million position in the popular Bitcoin exchange-traded fund. The stake is the biggest position in its portfolio.

Both wealth funds’ position in Bitcoin is unchanged since last quarter.

Earlier this year, blockchain analytics firm Arkham Intelligence attributed approximately 6,782 Bitcoins — worth roughly $453.6 million at the time of its analysis — to wallets connected to Bitcoin mining activity linked to the UAE’s Royal Group.

The findings highlight a distinction between how the UAE has built its bitcoin position compared with other governments known to hold large amounts of the asset. Countries such as the United States hold substantial Bitcoin reserves that largely originated from law enforcement seizures.

The UAE’s holdings, by contrast, stem primarily from domestic mining activity rather than confiscated assets.

Since the SEC approved a slew of Bitcoin funds in January 2024, major firms have been able to buy exposure to the asset via shares of the regulated vehicles that trade on stock exchanges.

BlackRock’s IBIT is the most successful crypto ETF: The fund has received more cash than any other crypto ETF and currently has $47.3 billion in assets under management.

Pension funds and U.S. states have all bought exposure to Bitcoin via the ETFs, along with more traditional investments like tech stocks and other U.S. equities.

This post Abu Dhabi Sovereign Wealth Funds Keep Big Bitcoin Positions first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.