YEREVAN (CoinChapter.com) — Abu Dhabi’s Mubadala Sovereign Wealth Fund has invested $436 million in BlackRock’s iShares Bitcoin ETF (IBIT), making a significant move into the Bitcoin ETF market. This investment was disclosed in a Feb. 14 SEC filing.
With this purchase, Mubadala secured over 8.2 million shares of IBIT in Q4 2024. The fund had no previous holdings in BlackRock’s Bitcoin ETF, making this a fresh entry into the market.
ETF analysts noted that Mubadala is now the seventh-largest known holder of BlackRock’s IBIT, ranking alongside institutional investors such as Goldman Sachs, Millennium Management, and Symmetry Investments.
Mubadala’s Bitcoin ETF Investment Signals Institutional Interest
Following the filing, Bloomberg ETF analyst James Seyffart confirmed Mubadala’s position among major institutional holders of IBIT. He noted that the fund’s move reflects growing institutional interest in spot Bitcoin ETFs.
Mubadala Becomes Top Bitcoin ETF Holder. Source: James SeyffartMeanwhile, Binance founder Changpeng Zhao pointed out that Mubadala is only one of several Abu Dhabi sovereign wealth funds. He hinted that other state-backed investment entities might also have exposure to Bitcoin ETFs.
Mubadala’s Bitcoin Move Sparks Debate. Source: CZ BinanceMarket analysts observed that Mubadala’s Bitcoin ETF investment aligns with Abu Dhabi’s long-term strategy of establishing itself as a global digital asset hub. Over the years, the UAE has introduced progressive regulations, attracting crypto firms and institutional investors.
Global Bitcoin Adoption Gains Momentum
Mubadala’s Bitcoin ETF investment highlights the increasing institutional adoption of Bitcoin. Some policymakers and investors have suggested that Bitcoin reserves could become a strategic asset.
In the United States, discussions around government-held Bitcoin have intensified. US Senator Cynthia Lummis responded to Mubadala’s investment by emphasizing the global race for Bitcoin exposure.
“I told you the race was on. It’s time for America to win,”
Lummis stated on X.
Senator Lummis Reacts to Mubadala’s Bitcoin ETF Move. Source: Cynthia LummisLummis has backed the Bitcoin Act of 2024, a proposal suggesting that the US government should sell part of its gold reserves to acquire 1 million Bitcoin, representing 5% of the total supply.
US States Push for Bitcoin Reserves
While the US federal government has yet to clarify its stance on Bitcoin reserves, individual US states are moving ahead. Notably, more than 20 states have introduced or passed laws supporting cryptocurrency investments.
Additionally, industry figures have pointed out that state-level initiatives could influence national policy on Bitcoin. Satoshi Act Fund CEO Dennis Porter has emphasized that US states are at the forefront of Bitcoin adoption efforts.
US States Push Bitcoin Adoption. Source: Dennis PorterAbove all, these developments, along with Mubadala’s Bitcoin ETF investment, indicate growing institutional interest in Bitcoin as a financial asset.
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