Two big sovereign investment firms in Abu Dhabi opened up exposure to Bitcoin in the fourth quarter of 2025, buying into BlackRock’s US-listed ETF during a market depression, reinforcing Bitcoin Abu Dhabi in institutional portfolios, according to regulatory filings.
The disclosures show that state based capital is not withdrawing from digital assets despite price pressure. Instead, large investors are using regulated exchange-traded funds to quietly build positions, signaling confidence in the long-term technology behind Bitcoin Abu Dhabi and broader UAE cryptocurrency development.
Institutional Allocation Through Regulated Technology
Mubadala Investment Company increased its stake in iShares Bitcoin Trust (IBIT) by nearly four million shares between October and December, bringing its total to 12.7 million shares. The move came as Bitcoin declined about 23% during the quarter.
According to market analysts, the strategy is an example of Abu Dhabi fund tripled bitcoin bet momentum, reflecting how long-term capital continues to scale exposure during volatility.
The expansion also strengthens conversations around potential UAE government bitcoin holdings, as sovereign-linked entities deepen ties to digital assets. Another Abu Dhabi-based firm, Al Warda Investments, reported holding 8.2 million IBIT shares at year-end, slightly up from the previous quarter. Combined, the two firms controlled more than $1 billion worth of Bitcoin exposure through the ETF.
With Bitcoin down again in early 2026, the current value of those holdings has eased to just above $800 million. Still, the steady build-up reinforces the broader narrative of Bitcoin Abu Dhabi as a strategic allocation rather than short-term speculation.
Executives at BlackRock have pushed back against claims that ETFs are driving instability. Robert Mitchnick, head of digital assets at BlackRock mentioned the mistaken belief that hedge funds using ETFs are causing heavy selling, but that does not match what the firm is observing. Instead, he said, IBIT holders are in it for the long term.
The use of ETFs allows institutions to access UAE cryptocurrency exposure without directly holding private keys or managing digital wallets. This structure reduces operational risk while keeping exposure to price movements.
Abu Dhabi Digital Assets Laws and Regulations
Abu Dhabi has positioned itself as a regional hub for digital finance, supported by clear frameworks developed within the Emirate’s financial free zones. Regulatory clarity has encouraged structured growth in UAE cryptocurrency markets.
While also shaping oversight of activities such as UAE bitcoin mining operations.
Authorities have focused on licensing exchanges and guardians, helping build trust among global investors. The presence of platforms linked to the Abu Dhabi digital asset exchange ecosystem has strengthened the Emirate’s reputation as a controlled yet innovation friendly environment.
At the same time, discussions around energy use and infrastructure continue, especially as UAE bitcoin mining projects expand. Policymakers are balancing technological ambition with sustainability goals.
Institutional investors are also evaluating liquidity channels, including access to the best cryptocurrency BTC exchange in UAE, which allows large transactions without sharply moving public markets.
These tools make scaling positions in Bitcoin Abu Dhabi more efficient. The continued allocation by sovereign-linked funds has fueled debate about the scale of UAE government bitcoin holdings, even as officials avoid listing broader strategies.
What remains clear is that Mubadala crypto exposure through regulated ETFs represents a structured approach to digital asset participation.
For now, while Bitcoin trades within a tight range near the mid $60,000 level, long-term capital tied to Bitcoin Abu Dhabi appears willing to hold steady, betting that regulated technology and patient investment will define the next stage of adoption.
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