Abu Dhabi Funds Increase Bitcoin ETF Exposure Amid Market Volatility

Abu Dhabi-based investment firms are significantly increasing their exposure to Bitcoin through spot Bitcoin ETFs, particularly BlackRock’s iShares Bitcoin Trust (IBIT), despite recent market downturns. This move signals growing confidence in the long-term potential of Bitcoin as an asset class among major sovereign wealth funds.

Sovereign Wealth Fund Investment Surpasses $1 Billion

Combined, Mubadala Investment Company and Al Warda Investments held more than $1 billion in IBIT shares at the end of 2025, according to recent regulatory filings CoinDesk. Mubadala increased its stake to 12.7 million shares, while Al Warda held 8.2 million shares. However, due to further Bitcoin losses in 2026, the combined value has since decreased to just over $800 million.

Mubadala’s Growing Bitcoin Position

Mubadala Investment Company, a sovereign wealth fund backed by the Abu Dhabi government, added nearly four million shares of IBIT between October and December 2025, bringing its total holdings to 12.7 million shares Bitcoin Magazine. This increase occurred during a period when Bitcoin’s price fell approximately 23% during the quarter. Mubadala initially began purchasing IBIT shares in late 2024 and has continued to add to its position.

Al Warda Investments Follows Suit

Al Warda Investments, another Abu Dhabi-based investment management firm overseeing diversified global assets for government-related entities, increased its IBIT holdings to 8.22 million shares in Q4 2025, up from 7.96 million in Q3 CryptoNewsZ. This allocation is particularly notable as Al Warda historically favored private investments.

Broader Institutional Interest in Bitcoin ETFs

Beyond Abu Dhabi, other institutional investors are likewise increasing their exposure to Bitcoin ETFs. Jane Street boosted its IBIT holdings by 7,105,206 shares in Q4 2025, bringing its total stake to 20,315,780 shares valued at $790 million. BlackRock and Morgan Stanley also increased their IBIT positions by over 2.37 million shares. Goldman Sachs disclosed roughly $2.36 billion in total crypto exposure, including a $1.1 billion position in IBIT, indicating a shift away from previous skepticism towards Bitcoin.

State and University Investments

Texas became the first U.S. State to purchase Bitcoin for its Strategic Reserve in November, acquiring $5 million worth of IBIT shares Bitcoin Magazine. Harvard University adjusted its crypto holdings in Q4 2025, reducing its Bitcoin position by 21% to 5.35 million IBIT shares ($265.8 million) while simultaneously establishing an $86.8 million stake in BlackRock’s iShares Ethereum Trust.

Key Takeaways

• Abu Dhabi sovereign wealth funds Mubadala and Al Warda Investments collectively held over $1 billion in BlackRock’s IBIT at the end of 2025.
• Mubadala increased its IBIT stake by 46% in Q4 2025, reaching 12.7 million shares.
• Al Warda Investments also increased its IBIT holdings, continuing a shift towards public BTC ETF allocations.
• Institutional interest in Bitcoin ETFs is growing, with significant investments from firms like Jane Street, Goldman Sachs, and BlackRock.
• State governments and universities are also beginning to explore Bitcoin as a potential investment.