Abu Dhabi’s cryptocurrency deepens with $480 million Bitcoin ETF position in BlackRock’s IBIT
Abu Dhabi’s sovereign wealth fund Mubadala Investment Company increased risk to cryptocurrencies by making additional investments in BlackRock’s spot Bitcoin ETF in the first quarter of 2025.
Recent filings with the U.S. Securities and Exchange Commission (SEC) show that the fund added 491,439 shares of BlackRock ishares Bitcoin Trust (IBIT) as of March 31, increasing its total holdings to 8,726,972 shares.
The purchase was worth approximately $28.8 million, and its additional position brought the fund to $408.5 million in the first quarter of IBIT, down from $436.9 million at the end of the fourth quarter, as the market price of IBIT fell.
Institutional crypto-food growth in Bitcoin ETFs
Although a quarter of the valuation has dropped, the market value has been appreciated after the strategic accumulation. At current prices, Mubadala’s IBIT shares are worth approximately $512 million, highlighting the potential upside potential for the fund’s increased exposure. BlackRock’s IBIT closed at $58.67 on Thursday, down 0.12% per day.
Mubadala’s decision reflects a growing trend in global institutions as part of a long-term asset diversification strategy that transfers capital to regulated Bitcoin investment vehicles.
Mubadala is one of several major agencies that have deepened IBIT exposure in recent months. Hong Kong-based investment company Avenir disclosed 14.7 million shares of IBIT shares at the end of the first quarter, up from 11.3 million at the end of 2024 and worth $691 million.
Citadel Advisors also increased its stake significantly from 1.1 million shares to 3.1 million IBIT shares. These positions are revealed through a mandatory 13F filing submitted by an investment manager who owns over $100 million in U.S. stock assets.
Strategic beliefs and transfer allocations among key asset managers
Although Citadel’s investments are made in a secondary role or on behalf of external clients, Mubadala holds its shares and invests in full discretion, demonstrating the direct management and strategic beliefs of Bitcoin’s long-term role. This distinguishes Mubadala from companies like Citadel where holdings may not reflect the view of internal investment, but rather the investment view of clients.
Blackrock’s iShares Bitcoin Trust has rapidly grown into the dominant U.S. spot bitcoin ETF market, with net inflows exceeding $45.5 billion since its launch in January 2024. As of the latest data, ETFs have managed assets of more than US$65.4 billion.
Other large IBIT holders include Millennium Management, whose holdings have been reduced to 17.5 million shares (less than 29.8 million shares), while Goldman Sachs (currently the largest shareholder, with 30 million shares worth about $1.4 billion.
It is worth noting that although some institutions have pruned exposures, such as the Wisconsin Investment Board slashed $321 million in IBIT positions, analysts noted that this does not mean that confidence in Bitcoin is weakened. Many funds continue to be held or added to other crypto-related positions such as strategies and common foundations.
Institutional trading analyst Macroscope stressed that these shifts often reflect portfolio rebalancing or liquidity management rather than changing the long-term outlook. The steady influx of high-profile entities in Bitcoin ETFs continues to mainstream adoption and validation Bitcoin is an investable asset class among sovereign wealth funds and institutional managers.
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