Abu Dhabi Wealth Fund Invests $437 Million in BlackRock Bitcoin ETF
Abu Dhabi's sovereign wealth fund, Mubadala Investment Company, has invested $436.9 million in BlackRock's spot Bitcoin ETF during the fourth quarter of 2024, according to The Block article. The investment was revealed in a filing published on Friday, February 14, 2025.
The purchase coincided with BlackRock securing a commercial license to operate in Abu Dhabi in November 2024. BlackRock's spot Bitcoin ETF, trading under the ticker IBIT, has become the market leader with assets under management reaching nearly $56 billion, as part of the total U.S. spot Bitcoin ETF market that now exceeds $100 billion in net assets.
This move by Abu Dhabi's fund comes amid growing institutional interest in cryptocurrency ETFs. Goldman Sachs recently invested approximately $2 billion in cryptocurrency ETFs, with significant positions in both Bitcoin and Ethereum products. The bank's regulatory filings show a 2,000% increase in Ethereum ETF holdings during the fourth quarter.
Mubadala Investment Company, which manages investments for the Abu Dhabi government, has been expanding its presence in the digital asset space. In 2023, the city government invested in Bitcoin mining operations, partnering with Marathon Digital and Zero Two to develop a large-scale Bitcoin mining complex in Abu Dhabi.
The investment takes place as Bitcoin trades near $100,000, having approached $110,000 in mid-January 2025. The cryptocurrency market continues to attract institutional investors through regulated investment vehicles, with BlackRock's Bitcoin fund emerging as a leader among U.S. spot Bitcoin ETFs.
The accessibility of Bitcoin ETFs continues to expand globally. In a recent development, Russian investment company Finam launched a structured bond product linked to BlackRock's Bitcoin ETF, allowing qualified Russian investors to gain exposure to the fund through a ruble-denominated instrument with built-in capital protection features.
