Abu Dhabi’s Mubadala Expands Crypto Portfolio in 2025
Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, has significantly advanced its investment in the cryptocurrency sector during the first quarter of 2025. This move was realized through an increased stake in BlackRock’s spot Bitcoin ETF.
Increasing Mubadala’s Holdings in BlackRock’s Bitcoin ETF
Recent filings with the US Securities and Exchange Commission (SEC) indicate that Mubadala has augmented its holdings by acquiring an additional 491,439 shares of BlackRock’s iShares Bitcoin Trust (IBIT). This action has elevated its total shares to 8,726,972 as of March 31. At the time of purchase, these new shares were valued at approximately $28.8 million, positioning Mubadala’s total Q1 investment in IBIT at $408.5 million. This marks a decrease from $436.9 million at the end of Q4, caused by a drop in IBIT’s market valuation.
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Institutional Interest in Bitcoin ETFs on the Rise
Despite a decrease in quarterly valuation, the strategic investment has since appreciated, with the current market value of Mubadala’s IBIT position rising to around $512 million. On Thursday, BlackRock’s IBIT closed at $58.67, reflecting a minor 0.12% daily decline. Mubadala’s increased investment mirrors a broader trend of global institutions channeling capital into regulated Bitcoin investment vehicles, aligning with long-term asset diversification strategies.
Several major institutions have followed suit, increasing their exposure to IBIT in recent months. For instance, Hong Kong-based Avenir reported a rise in its IBIT holdings to 14.7 million shares by the end of Q1, up from 11.3 million at the close of 2024, now valued at $691 million. Citadel Advisors also made a notable increase in its stake, from 1.1 million to 3.1 million IBIT shares. These adjustments were disclosed through mandatory 13F filings submitted by investment managers overseeing more than $100 million in US equity assets.
Strategic Decisions and Asset Allocation Adjustments
While Citadel’s investments might be made on behalf of external clients, Mubadala exercises full investment discretion over its shares, showcasing direct management and strategic belief in Bitcoin’s longevity. This sets Mubadala apart from firms like Citadel, where investments may reflect clients’ preferences rather than the firms’ internal strategies.
Since its inception in January 2024, BlackRock’s iShares Bitcoin Trust has quickly become a leader in the US spot Bitcoin ETF market, amassing over $45.5 billion in net inflows. The fund currently manages more than $65.4 billion in assets, drawing significant attention from large institutional investors.
Among the prominent holders of IBIT, Millennium Management has reduced its stake to 17.5 million shares, a decrease from 29.8 million. However, Goldman Sachs remains the top shareholder, with 30.8 million shares valued at approximately $1.4 billion. Despite some institutions reducing their positions, like the State of Wisconsin Investment Board, which lowered its $321 million IBIT holding, analysts assert this does not indicate declining confidence in Bitcoin. Many funds continue to bolster other crypto-related investments, including Strategy and Coinbase shares.
MacroScope, an institutional trading analyst, notes that these shifts often represent portfolio rebalancing or liquidity management rather than changing long-term perspectives. The consistent influx of high-profile entities into Bitcoin ETFs indicates ongoing mainstream acceptance and endorsement of Bitcoin as a viable asset class among sovereign wealth funds and institutional managers.
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