Abu Dhabi Funds Boost Bitcoin ETF Holdings Despite BTC Price Drop

Two of Abu Dhabi’s largest investment firms expanded their exposure to Bitcoin in the fourth quarter of 2025, increasing their holdings in BlackRock’s iShares Bitcoin Trust (IBIT) even as the cryptocurrency market declined. Regulatory 13F filings with the U.S. Securities and Exchange Commission reveal that both Mubadala Investment Company and Al Warda Investments added to their positions during a period when Bitcoin (BTC) fell roughly 23%.

Mubadala Investment Company, the Abu Dhabi government-backed sovereign wealth fund, purchased nearly four million additional shares of BlackRock’s spot Bitcoin ETF between October and December. This brought its total IBIT holdings to approximately 12.7 million shares by year-end. Mubadala initially invested in the Bitcoin ETF in late 2024 and has steadily increased its stake, signaling long-term confidence in regulated digital asset exposure.

Al Warda Investments, another Abu Dhabi-based asset manager overseeing diversified global portfolios for government-related entities, also raised its position. The firm reported holding 8.2 million IBIT shares at the end of Q4 2025, up from 7.96 million shares in the previous quarter.

Combined, the two institutions held more than $1 billion in Bitcoin exposure through BlackRock’s ETF at the close of 2025. However, with Bitcoin declining an additional 23% year-to-date in 2026, the estimated value of their holdings has fallen to just over $800 million, assuming no further purchases were made.

The increased allocations highlight growing institutional interest in spot Bitcoin ETFs, even during market downturns marked by low volatility, weaker retail participation, and broader macroeconomic uncertainty. Since its launch in early 2024, BlackRock’s IBIT has emerged as the leading vehicle for regulated Bitcoin investment in the U.S. market.

BlackRock’s head of digital assets, Robert Mitchnick, recently addressed concerns that hedge funds trading ETFs are fueling volatility. He noted that data does not support that view, emphasizing that many IBIT investors appear focused on long-term Bitcoin exposure rather than short-term trading.