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In a recent update, Abu Dhabi on Friday, revealed a massive $436.9 million stake in BlackRock’s iShares Bitcoin ETF (IBIT) as of December 31, 2024. The investment was made through Mubadala Investments, according to a 13F filing with the SEC. The company makes investments on behalf of Abu Dhabi’s government, which serves as the capital city of the United Arab Emirates.
This marks one of the first known instances of a sovereign wealth fund investing in Bitcoin, and it raises a big question: Are more government-backed funds about to follow?
With BlackRock already securing a commercial license in Abu Dhabi and institutional interest in crypto growing fast, this could be just the beginning.
Bitcoin Reacts to the News
Bitcoin’s price jumped nearly 1% to $97,700 following the announcement. This investment is one of the first known allocations to crypto assets by a major sovereign wealth fund, marking a significant moment for institutional Bitcoin adoption.
The move comes shortly after BlackRock secured a commercial license to operate in Abu Dhabi last November. With nearly $56 billion in assets, BlackRock manages the largest spot Bitcoin ETF, and Abu Dhabi’s backing highlights the growing confidence in Bitcoin among global financial institutions.
Abu Dhabi’s Expanding Crypto Investments
While this is one of Abu Dhabi’s biggest crypto investments, it is not the city’s first step into digital assets. In 2023, Abu Dhabi invested in Bitcoin mining, with Marathon Digital and Zero Two announcing plans for a large-scale mining complex in the region.
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has also suggested that other Abu Dhabi-based sovereign wealth funds could follow suit, indicating a broader interest in cryptocurrency investments within the region.
This report is just from one of the Sovereign Wealth Funds (Mubadala) in AD. There are a few other SWFs in AD. https://t.co/un1V9IgGHK
— CZBNB (@cz_binance) February 14, 2025
US Could Follow Abu Dhabi’s Lead, Says Pompliano
Bitcoin advocate Anthony Pompliano believes Abu Dhabi’s investment could push the United States toward a similar strategy.
“Abu Dhabi’s sovereign wealth fund just revealed they are buying hundreds of millions of dollars in bitcoin and people still think the United States won’t buy bitcoin. The Strategic Bitcoin Reserve is happening,” Anthony Pompliano noted on social media.
Abu Dhabi’s sovereign wealth fund just revealed they are buying hundreds of millions of dollars in bitcoin and people still think the United States won’t buy bitcoin.
— Anthony Pompliano
The Strategic Bitcoin Reserve is happening.
Just a matter of time.(@APompliano) February 14, 2025
He also pointed out that one of the world’s largest sovereign wealth funds is now investing in Bitcoin, emphasizing Bitcoin’s limited supply of 21 million coins. “I wonder what happens now that nation-states are here,” he added.
Institutional Interest in Bitcoin ETFs Grows
Abu Dhabi is not the only major institutional player increasing its Bitcoin exposure. The State of Wisconsin Investment Board (SWIB) has significantly raised its stake in BlackRock’s iShares Bitcoin Trust (IBIT).
According to an SEC filing, SWIB added over 3 million shares, bringing its total to 6 million shares worth more than $321 million as of December 31, 2024. Wisconsin’s investments also go beyond IBIT, with holdings in Coinbase, Marathon Digital Holdings, Robinhood, and Block Inc.
Abu Dhabi’s move is part of a broader trend of increasing cryptocurrency adoption in the Middle East. Governments and financial institutions in the region are showing greater interest in blockchain and digital assets.
With sovereign wealth funds entering the Bitcoin market, the question now is which country will be next to follow.
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