Abu Dhabi’s Strategic Investment in BlackRock’s Spot Bitcoin ETF
In a recent disclosure to the United States Securities and Exchange Commission (SEC), it has come to light that Abu Dhabi’s sovereign wealth fund has made a substantial investment in BlackRock’s spot Bitcoin ETF. This significant purchase occurred in the concluding quarter of 2024, following BlackRock’s acquisition of a commercial license to operate within Abu Dhabi in November of the previous year.
Abu Dhabi’s Sovereign Wealth Fund Acquires Major Stake in BlackRock’s Bitcoin ETF
On Friday, February 14th, a 13F filing with the SEC unveiled that Mubadala Investments, one of Abu Dhabi’s distinguished sovereign wealth funds, has acquired shares worth $436.9 million in BlackRock’s Bitcoin ETF, identified by the ticker symbol IBIT. Mubadala Investments plays a critical role in managing investments on behalf of Abu Dhabi’s government, further strengthening its financial strategies and diversifying its asset portfolio.
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BlackRock, recognized as the world’s largest asset manager with assets worth tens of trillions under its management, has been keen to extend its reach within the Middle East. With a particular focus on Abu Dhabi and Riyadh, the recent $437 million investment into its Bitcoin ETF underscores BlackRock’s objective to foster meaningful partnerships with regional sovereign wealth funds.
This recent acquisition by Abu Dhabi is not its first venture into the burgeoning world of cryptocurrencies. Back in 2023, the Abu Dhabi Developmental Holding Company collaborated with Marathon Digital to initiate digital asset mining operations within the capital, signifying a bold move into the digital finance sector.
Wisconsin Investment Board Expands Bitcoin ETF Holdings
BlackRock’s Bitcoin ETF has also captured significant domestic interest within the United States. On the same Friday, the State of Wisconsin Investment Board disclosed an increased investment in the leading cryptocurrency through the exchange-traded fund.
According to the SEC filing, Wisconsin’s pension fund now maintains approximately $321 million in spot Bitcoin ETFs, marking a notable increase from its prior holdings of $164 million reported in May 2024. This shift represents a 100% growth in their Bitcoin ETF exposure.
The latest data reveals that Wisconsin’s pension fund has fully transitioned its Bitcoin investments into BlackRock’s iShares Bitcoin Trust, completely divesting from Grayscale’s Bitcoin Trust (GBTC). Previously, the fund held 2.4 million shares, valued at $100 million, in BlackRock’s iShares Bitcoin Trust, alongside 1 million shares, valued at $64 million, in GBTC.
Remarkably, Bitcoin’s price has surged by nearly 70% since May 2024. As of the present, Bitcoin is valued at approximately $97,250, reflecting a modest 1% increase over the past 24 hours. CoinGecko data indicates that Bitcoin’s price has appreciated by about 90% over the last year, highlighting its robust performance in the cryptocurrency market.
