Abu Dhabi’s Mubadala Subtly Invests $408M in BTC through BlackRock
While a majority of the crypto asset community was preoccupied with charts and meme coins, one of the largest sovereign wealth funds in the world took a significant step. We’re not referring to minor players here. The BTC investment from Abu Dhabi is backed by a fund worth $300 billion, which sends a strong message. The Mubadala Investment Company of Abu Dhabi invested over $408 million into BTC, but they did it differently.
Rather than purchasing BTC directly, they opted for BlackRock’s iShares Bitcoin Trust (IBIT), recognized as one of the most rapidly growing spot Bitcoin ETFs. There were no press releases, no Twitter discussions, just a strategic, discreet entrance into the digital asset realm.
$408.5 Million in IBIT Shares
In the first quarter of 2025, Mubadala acquired an additional 491,000 shares of IBIT, increasing their total to approximately 8.7 million shares. This results in roughly $408.5 million in BTC exposure as of March 31.
ABU DHABI SOVEREIGN WEALTH FUND JUST DISCLOSED BUYING $511,799,977.26 WORTH OF #BITCOIN ETF
THIS IS WILD!!! pic.twitter.com/1vXKlZfRgV
— Vivek
To provide some context, Mubadala manages roughly $302 billion overall. Therefore, this isn’t a vast portion of their assets, but nevertheless, it represents one of the most significant known ETF-related Bitcoin investments by any sovereign wealth fund thus far. This indicates how institutions are beginning to approach the crypto market.
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Why Choose IBIT Instead of Buying Bitcoin Directly?
Because it offers a simpler and safer option from an institutional perspective.
Handling actual BTC necessitates dealing with custody, private keys, and crypto law challenges. For a fund like Mubadala, that’s a logistical hassle. However, investing in IBIT? It resembles the process of purchasing shares of any other stock or ETF. You gain BTC exposure without having direct involvement.
BlackRock introduced IBIT at the beginning of 2024, and since then, it has surged in popularity. It functions like a typical stock, with over 33 million shares traded daily, currently priced around $58.67 per share. Such market fluidity makes it an attractive choice for institutions looking to participate on their own terms.
Sovereign Wealth Funds Are Becoming More Open to BTC
Mubadala isn’t on its own in this regard. Sovereign funds globally, from Singapore to Norway, have been tentatively exploring the crypto landscape for some time. However, much of this exploration has taken place behind the scenes, often through venture investments or indirect exposure.
What sets Mubadala’s IBIT investment apart is its size, its public nature, and its ease of tracking. This level of openness is uncommon and reflects a shift in how large institutions and governments are considering Bitcoin.
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Some Are Still Hesitant
Interestingly, while Mubadala moved forward, Wisconsin’s State Investment Board opted to withdraw. They divested their IBIT shares during the same quarter. This serves as a reminder that not all investors are convinced about Bitcoin yet. Some funds perceive it as excessively unpredictable, risky, or simply misaligned with their investment strategies.
But that’s the current landscape—divided. Some are diving in, while others are holding back. Everyone is observing closely.
Abu Dhabi BTC Investment: What This Indicates
This action won’t cause an immediate surge in Bitcoin prices. However, it demonstrates that cryptocurrency is no longer exclusively for startups and retail traders. When a $300 billion fund discreetly purchases $400 million worth of BTC exposure, it conveys a clear message: digital assets are now part of the conversation.
Perhaps not at the forefront, but certainly no longer relegated to the sidelines.
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Key Takeaways
- The $408.5 million investment in Bitcoin by Abu Dhabi’s $300B Mubadala fund via BlackRock’s iShares BTC Trust (IBIT) signifies a notable institutional development.
- Rather than directly purchasing BTC, Mubadala selected IBIT to enhance custody, regulation, and exposure efficiency, making it a better fit for institutional portfolios.
- With a total of 8.7 million IBIT shares, Mubadala’s investment represents one of the largest known allocations to BTC exposure by a sovereign wealth fund.
- This action reflects the increasing interest from sovereign wealth funds worldwide, as Mubadala’s transparency marks a contrast to previous private or venture capital crypto endeavors.
- In contrast to Mubadala’s acquisition, Wisconsin’s state fund divested, highlighting the existing divide among institutions regarding Bitcoin’s viability as an investment.
The post Abu Dhabi’s Mubadala Quietly Bets $408M on Bitcoin via BlackRock appeared first on 99Bitcoins.
