Abu Dhabi Sovereign Wealth Fund Makes Million-Dollar Purchase of BlackRock Bitcoin ETF

• Abu Dhabi sovereign wealth fund invests in Bitcoin
• BlackRock Bitcoin ETF Leads With $56 Billion
• Abu Dhabi drives institutional adoption of cryptocurrencies

Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, has made a significant $436,9 million acquisition of BlackRock’s Bitcoin exchange-traded fund (ETF) during the last quarter of 2024. The purchase was confirmed in a recently released regulatory filing, marking one of the first moves by sovereign wealth funds to include Bitcoin-based financial products in their portfolios.

Mubadala Investment Company, which manages investments for the Abu Dhabi government, has previously shown interest in digital assets. This interest was reaffirmed in 2023, when the government supported a Bitcoin mining project in the emirate, in partnership with companies Marathon Digital and Zero Two, for the development of a large mining facility.

BlackRock’s Bitcoin ETF, the largest spot Bitcoin ETF in terms of assets under management, now holds approximately $56 billion. BlackRock’s obtaining a trading license to operate in Abu Dhabi in November appears to have been a strategic move ahead of this large allocation of funds.

The investment not only underscores the growing acceptance of digital assets by institutional investors, but also highlights a growing trend in the Middle East of governments and financial institutions expanding their presence in the blockchain and cryptocurrency markets. This move reflects a broader portfolio diversification policy adopted by sovereign wealth funds around the world, which are now exploring digital assets as an important strategic component.