Abu Dhabi’s Wealth Fund Invests $437M In Bitcoin

Abu Dhabi’s Mubadala Investment Company bought $436.9 million worth of BlackRock’s spot Bitcoin ETF (IBIT) in Q4 2023, according to a Feb. 16 filing.

The move aligns with BlackRock’s expansion into Abu Dhabi, where the asset manager secured a commercial license last November.

BlackRock’s IBIT ETF is the largest spot Bitcoin ETF by assets under management, holding nearly $56 billion. Mubadala, which manages investments on behalf of Abu Dhabi’s government, has been increasing its exposure to digital assets, making this one of its biggest crypto-related investments.

While this is a major step into crypto investments, it’s not Abu Dhabi’s first move in the sector. In 2023, the city’s government-backed entities invested in Bitcoin mining, with Marathon Digital and Zero Two announcing plans to build a large-scale mining complex in Abu Dhabi.

The United Arab Emirates (UAE) is actively involved in CBDC projects. It was a founding member of the mBridge project along with China, Hong Kong, and Thailand, and used mBridge for remittance payments to India and wholesale transfers among project members. Additionally, the UAE participated in Project Aber, a CBDC proof-of-concept with Saudi Arabia, which concluded in 2020.

Nevertheless, the neighboring Saudi Arabia seem not interested in crypto investments. Kingdom Holding Company (KHC), led by Saudi Prince Alwaleed Bin Talal, said last month it has no immediate plans to invest in cryptocurrencies due to their limited adoption as a payment method.

CEO Talal Ibrahim al-Maiman told Reuters that the company known for its traditional value investing strategy and its diversified portfolio of $13.6 billion in assets remains skeptical of the digital asset market.

“We support Mr. Buffett’s theory: you don’t buy, you don’t invest in what you cannot use to buy goods,” Al-Maiman explained on the sidelines of the World Economic Forum in Davos. “Since we can’t buy goods with cryptocurrencies, we’re not looking into them at this time.”

Although there has been ongoing speculation on social media about Saudi royal family investments in cryptocurrencies, Alwaleed has consistently expressed doubt. In 2017, the prince publicly stated that he believed bitcoin would eventually “implode.”

The company’s decision comes despite improved U.S. regulatory clarity and a more favorable environment for crypto under President Donald Trump’s pro-crypto administration. However, Kingdom Holding remains aligned with Alwaleed’s long-standing approach, favoring established sectors like finance, hospitality, healthcare, media, technology, and real estate over speculative digital assets.

Rumors circulated in 2024 that Qatar’s sovereign wealth fund made a big investment in Bitcoin, spurred by observations of a new wallet accumulating substantial BTC holdings.

Analysts noted a series of daily purchases of 100 BTC, totaling over 50,000 BTC (valued at over $3.3 billion at the time). Dubbed “Mr 100,” speculation abounds regarding the entity behind these acquisitions, with suggestions ranging from Qatar’s sovereign wealth fund diversifying its portfolio to secretive billionaires or banks preparing for ETF launches.