Abu Dhabi Invests $436M in Bitcoin: Mubadala Targets ETFs

Abu Dhabi's sovereign wealth fund, Mubadala, has taken a significant step by investing $436 million in the Bitcoin market.

The fund allocated these resources to US-listed spot ETFs on Bitcoin.

Mubadala Becomes Holder of BlackRock ETFs

According to documents filed, the investment was directed to BlackRock's iShares Bitcoin ETFs, allowing the fund to acquire 8.2 million shares. This is a new position for Mubadala, which previously held no shares in IBIT.

Analyst James Seyffart pointed out that, thanks to this transaction, Mubadala is now the seventh largest holder of IBIT. With this investment, the fund joins a small circle of top investors, including Goldman Sachs, Millennium Management and Symmetry Investments.

Binance founder CZ Zhao pointed out that Mubadala is the only sovereign wealth fund in Abu Dhabi. Zhao also said that other government entities may have exposure to the ETFs on Bitcoin.

This move aligns with Abu Dhabi's broader goal of establishing itself as a leader in blockchain and digital assets. Over the years, the city has earned a reputation as a prime destination for companies seeking investment opportunities. This has led to the introduction of regulations that attract industry players interested in a favourable environment for cryptocurrencies.

Growing Interest in Bitcoin at a Global Level

Mubadala's entry into the crypto space highlights the growing interest of global companies for exposure to Bitcoin.

At the policy level, the possibility of creating strategic cryptocurrency reserves is being discussed. In the US, some argue that Bitcoin could be part of this plan.

U.S. Senator Cynthia Lummis commented on the development of Mubadala, saying that the global rush for exposure to Bitcoin is accelerating.

On X (formerly Twitter), she stated:

"I told you, the race is on. It's time for America to win."

Lummis proposed the idea of creating a national Bitcoin reserve in the United States, selling some of the gold reserves to buy Bitcoin. Should the plan go ahead, one million Bitcoins, or 5% of the total supply, are expected to be purchased.

While the federal government's plans remain uncertain, several US states are taking steps to integrate digital assets into their financial policies. More than 20 states have already proposed regulations to facilitate investments in cryptocurrencies.

Industry leaders see these developments as a clear sign of the global race to adopt Bitcoin. According to analysts, more and more countries will emerge as pro-Bitcoin nations.