Abu Dhabi Sovereign Wealth Fund will step into Bitcoin with a $436 million ETF investment

Key takeout

Mubadala Investment Company invested $436.9 million in the Ishares Bitcoin Trust ETF in the first quarter of 2024. This is one of the first cryptocurrency investments by major sovereign wealth funds.

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Mbadara Investment Company, an Abu Dhabi sovereign wealth fund, purchased $436.9 million worth of iShares Bitcoin Trust (IBIT) shares in the first quarter of 2024, according to regulatory filings.

Mubadara, which manages more than $280 billion in assets, has acquired 8.2 million shares of IBIT, as disclosed in his 13th Fed filing with the U.S. Securities and Exchange Commission.

Bitcoin has responded positively to the announcement, rising 1% from the $96,700 level to $97,700.

This investment represents one of the first known allocations to crypto assets by major sovereign wealth funds.

Mbadala’s move to Bitcoin ETFs is due to institutional investors increasingly embracing digital asset investment products in traditional financial markets.

The Abu Dhabi-based fund’s ETF purchase follows the wider crypto adoption trends in the Middle East, where governments and financial institutions are increasing interest in blockchain technology and digital assets.

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