Abu Dhabi’s sovereign investment power is doubling down on cryptocurrency as the wider market struggles — with Mubadala Investment Company significantly increasing its Bitcoin exposure even as prices fall sharply.
Mubadala and one of its units have boosted their holdings in BlackRock’s Bitcoin spot ETF, the iShares Bitcoin Trust (IBIT), during the fourth quarter of 2025, according to recently filed U.S. regulatory disclosures. Despite a broad slump that saw Bitcoin and related ETFs lose more than 20 % of their value in late 2025 and early 2026, the sovereign wealth fund raised its IBIT position by about 46 % to roughly 12.7 million shares as of December 31, 2025.
The increase comes as part of a broader accumulation strategy. Another Abu Dhabi investment vehicle, Abu Dhabi Investment Council, also modestly expanded its IBIT stake — adding around 3 % to bring its total to roughly 8.2 million shares.
Taken together, the two funds’ Bitcoin ETF holdings exceeded $1 billion in market value at the end of 2025. This combined position represents a notable commitment by state-linked capital into digital asset markets at a point when many investors are retreating amid price volatility and macroeconomic uncertainty.
Buying the Dip
Bitcoin’s price has faced pressure since late 2025. After peaking near six-figures in October, the cryptocurrency slid sharply, trading as low as around $67,000 by early 2026 amid a broader macro sell-off and waning retail enthusiasm. Rather than trimming exposure, Abu Dhabi’s funds appear to be treating the downturn as a strategic buying opportunity — a contrarian move that underscores confidence in Bitcoin’s long-term prospects.
Mubadala’s move reflects a broader shift among institutional investors toward regulated crypto exposure through exchange-traded funds rather than direct holdings. BlackRock’s IBIT — the world’s largest spot Bitcoin ETF — has emerged as the preferred vehicle for many large players seeking regulated market participation without direct custody of digital assets.
Strategic Rationale
For Mubadala and its affiliated entities, the increased Bitcoin ETF exposure may serve multiple purposes: diversification away from traditional asset classes, potential inflation hedging, and positioning in a market segment poised for future institutional growth. Some analysts interpret the moves as part of a broader trend of sovereign and long-term investors allocating a small but meaningful portion of portfolios to digital assets — particularly through regulated financial products.
While the decision comes with near-term mark-to-market volatility — the combined holdings have declined in value since year-end as Bitcoin prices continued to ebb — market watchers point out that large institutional buyers often view downturns as buying windows rather than triggers to sell.
