Abu Dhabi’s Mubadala Investment Company has cemented the emirate’s growing role in the global institutional crypto space with a $408 million investment in BlackRock’s IBIT.
Abu Dhabi Strengthens Crypto Bet via BlackRock’s IBIT
Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, has significantly increased its exposure to Bitcoin, committing over $408 million through BlackRock’s iShares Bitcoin Trust (IBIT). The move, disclosed in a recent SEC filing, highlights the emirate’s growing appetite for digital assets while underlining the appeal of regulated investment vehicles over direct cryptocurrency ownership for institutional players.
The latest acquisition of 8.7 million IBIT shares brings Mubadala’s total Bitcoin ETF holdings to nearly $1 billion. This expansion marks one of the largest Bitcoin-related investments by a sovereign wealth fund to date, reaffirming Abu Dhabi’s position as one of the Middle East’s most crypto-forward jurisdictions.
A Strategic Play for Institutional Exposure
Rather than purchasing Bitcoin directly, Mubadala opted for exposure via BlackRock’s spot Bitcoin ETF, a route increasingly favored by large asset managers and sovereign entities. Managing direct Bitcoin holdings entails custodial, regulatory, and operational complexities that many institutional investors prefer to avoid. Through IBIT, Mubadala gains market exposure while navigating clear regulatory frameworks and sidestepping the technical challenges of direct custody.
With assets under management totaling around $302 billion, Mubadala’s IBIT position represents a modest portion of its portfolio. However, in relative terms, it remains one of the largest ETF-based Bitcoin allocations by any sovereign wealth fund globally.
Abu Dhabi’s Crypto Ambitions Accelerate
The investment aligns with Abu Dhabi’s broader strategy to cement its status as a regional hub for digital assets and blockchain innovation. The emirate has made considerable strides in recent years, attracting a wave of cryptocurrency firms and regulatory approvals. In April, stablecoin issuer Circle secured a money services business license in Abu Dhabi and entered a strategic partnership with Hub71, the city’s flagship tech ecosystem.
Hub71 CEO Ahmad Ali Alwan said,
“This partnership highlights our commitment to positioning Abu Dhabi as a leading destination for digital assets.”
Abu Dhabi’s regulatory and business-friendly environment has drawn increasing interest from global players seeking to establish a foothold in the Middle East’s expanding crypto economy.
Global Market Dynamics and Shifting Sentiment
The timing of Mubadala’s expanded Bitcoin bet coincides with a notable political event — former U.S. President Donald Trump’s state visit to Abu Dhabi. His presence at a state dinner underscores the growing intersection between traditional diplomacy and the financial influence of digital assets in 2025.
Notably, while Mubadala increased its IBIT holdings during the first quarter of 2025, Wisconsin’s State Investment Board took the opposite route, offloading its IBIT shares in the same period. The divergence illustrates the persistent divide in institutional sentiment towards Bitcoin, with some funds embracing regulated exposure and others maintaining a cautious stance over crypto market volatility and regulatory uncertainty.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
Source: https://cryptodaily.co.uk/2025/05/abu-dhabis-crypto-climb-continues-with-408m-etf-play