Mubadala Investment Buys BlackRock’s iShare Bitcoin ETF

Mubadala Investment Company, Abu Dhabi’s state-owned premier Sovereign Wealth Fund (SWF) which holds more than $302 billion, said that it has invested $around 437 million in BlackRock’s iShares Bitcoin ETF (IBIT).

The company revealed this in a 13F disclosure with the US Securities and Exchange Commission (SEC) and underscores the growing institutional embrace of Bitcoin by sovereign wealth funds. The Bitcoin holdings, which comprise just 0.14% of its portfolio, place Mubadala Investment Company as the seventh largest holder of IBIT.

According to various media reports, this is not Abu Dhabi’s first foray into digital assets. The emirate has been actively exploring crypto-related ventures, including a significant investment in Bitcoin mining operations in 2023.

That year, Marathon Digital and Abu Dhabi-based Zero Two announced plans to develop a large-scale Bitcoin mining complex in the capital city, further signalling the region’s commitment to the future of digital finance.

Besides Mubadala Investment Company, Norway’s sovereign wealth fund, Norges Bank Investment Management (NBIM), also holds about $355 million in indirect Bitcoin exposure, according to K33 Research.

The reports also said that Mubadala’s acquisition of 8.2 million IBIT shares aligns with a broader trend of institutional capital flowing into the digital asset sector, particularly in the Middle East, where governments are increasingly integrating blockchain technology and cryptocurrencies into their financial ecosystems.

Investment Timing

Interestingly, the investment was made in the first quarter of 2025 after BlackRock, the world’s largest asset manager, secured a commercial license to operate in Abu Dhabi in November 2024. BlackRock’s IBIT, the dominant spot Bitcoin ETF by assets under management, currently holds nearly $56 billion, reflecting the surge in institutional confidence in Bitcoin as a viable financial instrument.

The revelation of Abu Dhabi’s substantial Bitcoin stake also sparked reactions from industry figures. Bitcoin evangelist Anthony Pompliano took to social media to highlight the strategic implications of the move.

“Abu Dhabi’s SWF just revealed they are buying hundreds of millions of dollars in Bitcoin, and people still think the US won’t buy Bitcoin? The Strategic Bitcoin Reserve is happening,” he said and hinted at a potential shift in national reserves strategies globally.

It may be mentioned here that Abu Dhabi recently integrated Tether USD (USDT) stablecoin into its financial system and laid the ground for a joint effort from Coinbase and Chainlink to boost institutional adoption in the region.