The CEO of the world’s largest asset manager BlackRock, Larry Fink, confirmed at the New York Times DealBook Summit that several sovereign wealth funds (SWFs) systematically increased their positions during the recent Bitcoin corrections.
The state-owned investors used price dips at 120'000, 100'000 and below 90'000 dollars to gradually build long-term Bitcoin holdings. Fink emphasized that these purchases were not short-term trades but strategic long-term positions with a multi-year investment horizon. Fink’s revelations about systematic sovereign fund purchases during the correction are viewed as an important signal for the growing institutional acceptance of Bitcoin as a strategic reserve asset – especially given that these are among the most conservative institutional investors in the world.
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Abu Dhabi dominates institutional Bitcoin investments
The most concrete data is available for Abu Dhabi’s sovereign wealth funds. The Abu Dhabi Investment Council (ADIC) more than tripled its holdings of BlackRock’s iShares Bitcoin Trust (IBIT) in the third quarter of 2025: As of 30 September 2025, ADIC held nearly 8 million IBIT shares worth approximately 518 million dollars – an increase of 230 percent compared to 2.4 million shares three months earlier.
Additionally, Mubadala Investment Company, another Abu Dhabi sovereign fund with over 300 billion dollars in assets under management, held around 8.7 million IBIT shares worth approximately 567 million dollars at the end of September 2025. Combined, the two Abu Dhabi funds hold more than 16 million IBIT shares worth roughly 1.1 billion dollars, making the United Arab Emirates the most significant identified sovereign Bitcoin investor via ETF vehicles.
"We view Bitcoin as a store of value similar to gold, and as the world continues moving toward a digital future, we see Bitcoin playing an increasingly important role alongside gold." - Spokesperson for the Abu Dhabi Investment Council (ADIC)
Luxembourg and Bhutan as pioneers
Luxembourg’s Intergenerational Sovereign Wealth Fund (FSIL) set a precedent in October 2024 as the first sovereign fund in the Eurozone with a direct Bitcoin allocation. FSIL has invested 1 percent of its portfolio – about 9 million dollars of a total 730 million dollars in assets – in Bitcoin ETFs. Luxembourg deliberately opted for ETF exposure rather than direct Bitcoin ownership to minimize custody risks.
Bhutan’s Druk Holding & Investments follows a completely different strategy: Bitcoin mining powered 100 percent by renewable hydropower. The Himalayan kingdom holds over 13'000 BTC worth roughly 1.2 billion dollars – equivalent to around 30 percent of Bhutan’s GDP. Bhutan began mining in 2019 and generates 55 to 75 BTC per week from its mining operations.
Norway’s Government Pension Fund Global (GPFG), the world’s largest sovereign fund with 1.76 trillion dollars in assets under management, holds no direct Bitcoin exposure but has indirect exposure through stakes in MicroStrategy, Coinbase and Bitcoin mining companies such as MARA Holdings. The indirect Bitcoin exposure is estimated at around 400 million dollars.
IBIT loses 21 billion dollars
Despite recent setbacks, BlackRock’s IBIT remains the world’s largest Bitcoin ETF. As of December 2025, the fund manages approximately 776.475 BTC worth around 72 billion dollars – accounting for 59 percent of all Bitcoin held by US-approved spot ETFs. However, IBIT lost about 21 billion dollars in combined AuM in November 2025 due to Bitcoin price declines and outflows. Since mid-October, US Bitcoin ETFs have recorded nearly 4 billion dollars in net outflows. Some analysts attribute the outflows to the unwinding of arbitrage trades rather than institutional panic.
For the full year 2025, Bitcoin ETFs still recorded net inflows of 7 billion dollars. Notable institutional investors alongside the sovereign funds include JPMorgan Chase, the Harvard Endowment and the Wisconsin state fund. Since ETF approval, BlackRock has recorded more than 62 billion dollars in net inflows.
Fink’s strategic pivot and Bitcoin as an “asset of fear”
Larry Fink’s current endorsement of Bitcoin stands in stark contrast to his earlier statements. In October 2017, Fink called Bitcoin an “index for money laundering”. His change of stance accelerated from June 2023 onward, when BlackRock filed an application for a spot Bitcoin ETF with the SEC. At the DealBook Summit in December 2025, Fink described Bitcoin as an “asset of fear” – an asset acquired by investors due to structural concerns over currency debasement, rising government debt and geopolitical instability. This characterization positions Bitcoin as a hedge against systemic risks, similar to gold’s historical role.
At the World Economic Forum in Davos in January 2025, Fink offered a hypothetical forecast: If sovereign wealth funds were to allocate 2 to 5 percent of their portfolios to Bitcoin, the price could reach 500'000 to 700'000 dollars. With 13 trillion dollars in combined SWF assets, a 2–5 percent allocation would generate 260 to 650 billion dollars in new Bitcoin demand – significant upward pressure relative to Bitcoin’s current market capitalization of about 1.9 trillion dollars.
BlackRock’s Gulf partnerships and geopolitical context
Fink’s insights into sovereign fund buying activities are not coincidental. BlackRock maintains deep partnerships with Gulf sovereign wealth funds, particularly Saudi Arabia’s Public Investment Fund (PIF). In April 2024, BlackRock and PIF announced the creation of a multi-asset investment platform in Riyadh, with an initial 5 billion dollar investment from PIF.
For oil-rich Gulf states, Bitcoin offers multiple strategic advantages: diversification away from US dollar-dominated reserves, hedging against oil price volatility and demonstrating technological progressiveness within Vision 2030 strategies. The decentralized nature of Bitcoin also means that no single government can freeze or confiscate the asset – relevant for countries facing sanction risks or geopolitical uncertainties.
Which sovereign funds could follow?
Saudi Arabia’s PIF appears to be the most likely next candidate. With 925 billion dollars in assets under management and a target of 2 trillion dollars by 2030, the fund maintains deep BlackRock partnerships and has an aggressive diversification mandate away from oil. PIF invests heavily in technology, gaming and infrastructure – a Bitcoin allocation would fit seamlessly into this narrative.
Other potential candidates include Singapore’s GIC and Temasek (both already heavily invested in blockchain infrastructure), Qatar’s QIA (reportedly evaluating digital asset investments despite earlier reluctance) as well as European funds following Luxembourg’s example. China’s SAFE Investment Company and CIC appear unlikely due to China’s strict crypto regulations since 2021. Kuwait’s KIA has no Bitcoin exposure, as Kuwait enforces a comprehensive ban on cryptocurrency activities.
Bitcoin as a reserve asset
Larry Fink’s confirmation of systematic sovereign wealth fund accumulation marks a fundamental shift in Bitcoin’s narrative from a speculative retail asset to an institutional reserve asset. The current cycle is characterized by ETF structures enabling passive capital flows and by sovereign fund participation indicating extremely long-term holding periods.
The evolution of Fink’s stance – from “index for money laundering” (2017) to “asset of fear” as a legitimate hedge (2025) – symbolizes a broader acceptance shift in traditional financial markets. Normalization at the highest institutional level, combined with documented allocations from Abu Dhabi, Luxembourg and Bhutan, establishes Bitcoin as a permanent component of global asset allocation.
The next 12–24 months will reveal whether further major sovereign wealth funds make public allocations. Luxembourg’s precedent and Abu Dhabi’s aggressive accumulation may generate peer pressure – the fear of missing out on strategic diversification opportunities is an underrated catalyst at the institutional level.
