Abu Dhabi's Mubadala Investment Company increased its position in the BlackRock IBIT Bitcoin ETF by 46 percent in Q4 2025. The sovereign wealth fund held approximately 12.7 million IBIT shares worth over $630 million at year-end.
Together with sister entity Al Warda Investments, the combined position crossed the $1 billion mark for the first time. These figures come from quarterly 13F filings with the SEC. Mubadala bought into falling prices, as Bitcoin lost around 23 percent in the fourth quarter. Al Warda is a subsidiary of the Abu Dhabi Investment Council within the Mubadala group. At the reporting date, it held 8.2 million IBIT shares worth approximately $408 million.
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Buying the dip: the strategy behind the additions
Mubadala began building its IBIT position in late 2024. In early 2025, the fund reported holdings of approximately $437 million. By Q3, the position stood at 8.7 million shares before Mubadala added nearly 4 million shares in Q4. Bitcoin closed 2025 at $87,502, well below its all-time high of around $124,000.
Al Warda also added to its position, though on a smaller scale. This increase amounted to roughly 255,000 shares compared to the previous quarter. Traditionally, the entity focuses on private market investments such as buyouts, infrastructure, and real estate. As a result, the Bitcoin ETF marks an expansion of its investment universe into digital assets.
The timing stands out. Both funds were buying while other institutional investors reduced their positions. Goldman Sachs cut its Bitcoin ETF exposure. Meanwhile, Harvard Management Company sold 1.46 million IBIT shares worth approximately $56 million. At the same time, it invested $86 million in BlackRock's Ethereum ETF, ETHA.
Institutional demand for Bitcoin ETFs surges
The Abu Dhabi positions fit into a broader institutional trend. According to Q4 13F filings, the number of institutional Bitcoin ETF holders rose from 1,332 to 1,694. That represents a 27 percent increase in a single quarter. Bitcoin ETFs have reached nearly 70 percent of the holder count of the SPDR Gold Shares ETF in under a year. For comparison, that product has been on the market for over 20 years.
AUM grew at varying rates depending on investor type. Banks increased their holdings by 104 percent, and pension funds by 103 percent. Hedge funds grew 62 percent to $13.8 billion. Among the largest holders is Brevan Howard with $1.4 billion in Bitcoin ETFs. Meanwhile, the pension fund of the US state of Wisconsin doubled its position to over $335 million. Barclays also reported $131 million in IBIT shares.
BlackRock's IBIT dominates the market overall. Currently, the fund manages around $52 billion and is the largest spot Bitcoin ETF worldwide. In its first year after launching in January 2024, IBIT attracted $37 billion in inflows. No ETF in financial history has grown that fast.
Abu Dhabi as a strategic crypto hub
These investments fit into a broader Abu Dhabi strategy. In October 2025, the United Arab Emirates exempted virtual assets and investment fund management from value-added tax. BlackRock had already obtained a trading license in the emirate in November 2024. Additionally, the Abu Dhabi Global Market has positioned itself as a regulated crypto hub in the region.
Mubadala itself manages $330 billion and is considered the world's most active sovereign wealth fund. In 2024, the fund invested $29.2 billion across 52 transactions, a 67 percent increase over the prior year. About 57 percent of capital went into the US market. Key focus areas include technology, AI, semiconductors, and financial services. Bitcoin ETFs thus fit into a portfolio that deliberately targets US financial products.
The UAE has the highest crypto adoption rate in the MENA region. Projections for 2026 estimate around 33 percent of the population actively using digital assets. State-backed investments through regulated US ETFs reflect an institutional approach. Rather than relying on direct crypto exchanges, Abu Dhabi seeks Bitcoin exposure through established financial infrastructure.
Price decline pushes portfolio value to $800 million
This consistent position building comes with a catch. Since the end of 2025, Bitcoin has lost around 23 percent. As a result, the current value of the combined Abu Dhabi position sits just above $800 million. Still, the funds have not reduced their holdings. On February 6, 2026, IBIT trading volume hit a record of over $10 billion. On that day, the price dropped 13 percent.
For Mubadala and Al Warda, the paper loss is manageable relative to total AUM. With $330 billion in assets under management, the Bitcoin position accounts for less than 0.3 percent of the portfolio. Yet the signal it sends is significant. A sovereign wealth fund of this scale does not buy Bitcoin casually. In fact, the 13F data show a systematic position build over four quarters, one that continued even through correction phases.
