Abu Dhabi & Bitcoin: A Curious Affair šŸ¤”

It is a truth universally acknowledged, that a sovereign wealth fund in possession of considerable fortune, must be in want of a profitable investment. And lo, the Abu Dhabi Investment Council (ADIC) has found its fancy-in the exceedingly volatile, yet endlessly captivating world of Bitcoin.

Abu Dhabi’s ADIC Takes A Plunge into Blackrock’s Bitcoin ETF IBIT

Reports, dutifully recorded in those official, and often bewildering, regulatory filings (here, for those inclined to such tedious accounting), reveal that the ADIC has more than tripled its stake in Blackrock’s Ishares Bitcoin Trust (IBIT) during the third quarter of 2025. Tripled, you say! As if the price fluctuations weren’t drama enough, now we have investment councils engaging in what can only be described as a rather…spirited embrace of this digital curiosity. šŸ™„

From a modest 2.4 million shares at the end of the second quarter, the ADIC amassed nearly 8 million shares (a precise 7,963,393-for accuracy, of course!) by the close of the third. These shares, it is said, held a value of roughly $518 million on September 30th. A sum not to be sneezed at, though one wonders if accounting for the subsequent market whims gives one pause.

This substantial increase-a gain of 230% to 233%, depending on whose numbers you believe-occurred during a period of expansion for Bitcoin, culminating in a fleeting ascent above $126,000. Alas, as transient as all earthly glories, that peak was soon followed by a correction, a tumble downward that brought prices back to earth by 20-25%. One imagines the ADIC’s strategists observing all this with the stoicism befitting their station…or perhaps a slight tightening of the jaw. 🤨

Despite the subsequent market turbulence, which has caused a veritable flood of redemptions from similar ETFs – a staggering $523 million withdrawn from IBIT in November alone! – the ADIC’s actions seem guided by a longer view. Indeed, this appears not a gamble made on fleeting speculation, but a deliberate step within Abu Dhabi’s grand design for diversification. A sensible precaution against…well, against the inevitable fading of old fortunes?

Mubadala Investment Company, Abu Dhabi’s flagship fund, maintained its existing 8.7 million-share IBIT position during this period. Together, these two entities now command approximately 16.7 to 16.96 million shares, representing a commitment of roughly $1.085 billion; making the UAE a significant holder of Bitcoin-through the somewhat conventional avenue of U.S. ETFs, no less! 🧐

This ETF investment is presented alongside Abu Dhabi’s burgeoning direct involvement in Bitcoin mining, through endeavors linked to Citadel Mining and Marathon Digital-Zero Two. An undertaking that, according to estimates, has added thousands of freshly mined Bitcoins to the emirate’s accumulating digital treasure. It appears they are hedging their bets, or perhaps, more accurately, building a digital fortress.

A representative of ADIC, in a statement to Bloomberg (here), explained that Bitcoin is viewed with the same esteem as gold-a digital store of value. A small, yet significant, turning point away from the reliance on…oil. One wonders if the camels are equally enthusiastic about this modern turn of events. 🐪

This development, in any case, confirms Abu Dhabi’s position as a proactive participant in the digital asset realm, even amidst the inherent volatility of the market. It is a bold move, a testament to foresight, or perhaps just a very large, very complex gamble. Only time, that relentless arbiter of all things, will tell.

FAQā“

  • By what percentage did ADIC increase its IBIT holdings in Q3 2025?
    ADIC expanded its position by more than 230%, moving from about 2.4 million to nearly 8 million shares.
  • What is the combined IBIT exposure of ADIC and Mubadala?
    Together they hold roughly 16.7 million to 16.96 million shares.
  • What was the value of ADIC’s Q3 IBIT position at the quarter’s close?
    The stake was worth about $518 million based on the Sept. 30 closing price.
  • Why is Abu Dhabi investing more in Bitcoin, both directly and through ETFs?
    Officials see Bitcoin as a long-term store of value and part of a broader diversification strategy linked to the UAE’s digital economy initiatives.

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2025-11-20 08:58