Abu Dhabi Sovereign Wealth Fund Invests $437M in BlackRock’s Spot Bitcoin ETF

Mubadala Investment Company, Abu Dhabi Sovereign Wealth Fund, has revealed a significant exposure in BlackRock’s Spot Bitcoin exchange-traded funds (ETFs). According to a recent disclosure, the investment board purchased $437 million worth of iShares Bitcoin Trust (IBIT) in the first quarter of 2024. 

Abu Dhabi Sovereign Wealth Holds $437M in IBIT Shares

Abu Dhabi Sovereign Wealth Fund is a government-owned investment organization that manages the wealth fund for Abu Dhabi, United Arab Emirates.

The investment board currently holds 8,235,533 shares of IBTC, valued at approximately $437 million at current market value. This exposure represents one of the major sovereign wealth funds’ first known allocations to crypto assets.

Abu Dhabi Bitcoin disclosure adds to the growing trend of BTC ETF exposure. Earlier today, Hong Kong-based investment firm Avenir Group revealed $600 million in BlackRock’s Bitcoin ETF. Similarly, the State of Wisconsin Investment Board also reported more than $321 million in Bitcoin ETF holdings.

The investment ease and regulatory protection that Spot Bitcoin ETF offers make it appealing to investors. Since the product’s approval in the United States in January 2024 by the Securities and Exchange Commission (SEC), Bitcoin has received massive attention from institutional players.

This investment vehicle allows institutional investors to gain exposure to the leading crypto asset without the hassles of direct ownership, such as storage and security.

Meanwhile, while Abu Dhabi’s recent disclosure is one of the most significant crypto-related investments ever made on behalf of Abu Dhabi, this is not its first foray into the crypto scene. In 2023, the government invested in bitcoin mining.

Spot Bitcoin ETF Record Over $171M Outflow

Abu Dhabi’s move into Bitcoin ETFs was met with excitement from the crypto community. It highlights the growing interest in Bitcoin among institutional players and signifies the digital asset’s inclusion in traditional investment portfolios.

However, the Bitcoin ETF market registered a net negative flow on this day. According to Lookonchain data, the product saw an outflow of 1,765 BTC ( approximately $171.06 million). Fidelity, one of the more prominent players in the market, experienced the largest single outflow of about $95.21 million. The leading cryptocurrency trades at $98,16 at press time4, representing a mild 2.25% increase in the last 24 hours.