Two Abu Dhabi sovereign funds boosted their positions in a Bitcoin exchange-traded fund during the fourth quarter when the bull market in cryptocurrencies gave way to a brutal selloff.
Mubadala Investment Co. increased its position in iShares Bitcoin Trust ETF to 12.7 million shares from 8.73 million in the third quarter, according to a 13F filing with the US Securities and Exchange Commission. A unit of Abu Dhabi Investment Council, an independently-run entity of Mubadala, raised its holding to 8.21 million from 7.96 million shares.
But even as they raised their stakes in the ETF, the market value of those positions failed to keep pace as crypto prices slumped. The iShares Bitcoin Trust ETF dropped about 26% in the fourth quarter and is down roughly 23% so far this year after a market crash sparked by a wave of liquidations tied to leveraged bets that pushed Bitcoin below $70,000.
Mubadala’s holdings in iShares Bitcoin Trust ETF:
- 12.7 million shares valued at $631 million in 4Q vs 8.7 million shares valued at $567 million in 3Q
Abu Dhabi Investment Council unit Al Warda Investments’ holdings:
- 8.21 million shares valued at $408 million in 4Q vs 7.96 million shares valued at $518 million in 3Q
📌 Why it matters: The increased allocations signal growing institutional acceptance of Bitcoin as a strategic asset class, with Abu Dhabi’s sovereign funds willing to buy during volatility rather than chase rallies.
📌 Bottom line: Despite adding millions of shares, Mubadala and ADIC’s positions lost value due to Bitcoin’s plunge, underscoring the double-edged sword of averaging down in volatile assets.
