Abu Dhabi funds push bitcoin ETF holdings above $1bn

Two of Abu Dhabi’s most influential investment vehicles significantly boosted their exposure to BlackRock’s iShares Bitcoin Trust during the fourth quarter of 2025, pushing their combined bitcoin exchange-traded fund holdings above the $1 billion mark at the close of the calendar year. The moves, disclosed through quarterly filings with the U. S. Securities and Exchange Commission, underscore a broader shift among sovereign players toward regulated digital assets even as cryptocurrency markets endure volatility.

Mubadala Investment Company, a sovereign wealth fund owned by the government of Abu Dhabi and chaired by Sheikh Mansour bin Zayed Al Nahyan with Khaldoon Khalifa Al Mubarak as chief executive, reported owning 12.7 million shares of IBIT at the end of December, up 46 per cent from its third-quarter holdings. Its stake was valued at around $630 million at the end of 2025.

Al Warda Investments, an Abu Dhabi-based investment management firm linked to government-related entities, held about 8.2 million IBIT shares, a modest increase from the roughly 8 million held three months earlier and valued at more than $400 million. Combined, the two holdings exceeded the $1 billion threshold by year-end, representing a substantial institutional bet on regulated bitcoin exposure via a U. S.-listed product.

The IBIT ETF, one of the first spot bitcoin exchange-traded funds to attract mainstream institutional capital since its launch in 2024, has rapidly become a focal point for large asset managers seeking regulated access to the world’s largest cryptocurrency. It remains the largest bitcoin ETF by assets under management despite broader outflows and price pressure in the early part of 2026, as market participants grapple with waning retail sentiment and macroeconomic headwinds.

The Abu Dhabi funds’ decision to increase their exposure during the final quarter of 2025 came against a backdrop of significant price swings in the bitcoin market. Across the fourth quarter, bitcoin experienced a notable downturn, sliding by roughly 23 per cent over the period and continuing to struggle in early 2026, which has weighed on the value of ETF shares held by institutions. As of mid-February, the combined value of Mubadala’s and Al Warda’s IBIT holdings had retraced to around $800 million based on prevailing share prices, illustrating the impact of digital asset volatility on high-profile portfolios.

This pattern reflects a nuanced approach by sovereign and institutional investors, who appear willing to accept near-term fluctuations in pursuit of long-term diversification and potential returns. The uptick in holdings by Mubadala and Al Warda aligns with broader themes in institutional allocations, where regulated crypto products are increasingly seen as tools for hedging against inflationary pressures and for accessing growth in nascent markets.

Analysts tracking institutional crypto flows note that the increase in sovereign exposure to IBIT coincides with a broader recalibration of portfolio strategies among major financial players. Banks and asset managers such as Goldman Sachs have also expanded their exposure to bitcoin ETF products, signalling a shift in sentiment from scepticism toward a more integrative stance on digital assets within diversified portfolios. This trend has emerged even as ETFs linked to cryptocurrencies navigate periods of redemption and asset contraction.

Market watchers observe that regulatory clarity in the United States around spot bitcoin ETFs has been a key enabler for sovereign and institutional participation. The SEC’s approval of products such as IBIT provided a regulated framework that has assuaged some of the concerns traditionally associated with unregulated cryptocurrency holdings. That institutional interest has grown despite ongoing debates over market structure and volatility suggests a maturing appetite for digital assets among large-scale investors.

For Mubadala and Al Warda, the move into bitcoin ETFs dovetails with broader strategic mandates to diversify beyond conventional asset classes and to seek out high-growth opportunities in global markets. Mubadala’s sprawling portfolio already spans sectors such as technology, healthcare and infrastructure, and its meaningful allocation to IBIT represents a continuation of efforts to integrate digital asset exposure into long-term investment frameworks.