Abu Dhabi Massively Expands Bitcoin Position – Sovereign Wealth Funds Signal Confidence

Abu Dhabi Commits to Bitcoin as Long-Term Store of Value

While many market participants grew nervous about Bitcoin volatility in the fourth quarter of 2025, Abu Dhabi's sovereign wealth funds seized the opportunity to buy more. Newly published 13F filings reveal that Mubadala Investment increased its position in the BlackRock Bitcoin Spot ETF (IBIT) by an impressive 45.6 percent. This strategic decision underscores a fundamental shift in institutional perception of Bitcoin – from a speculative asset to an established portfolio component on par with traditional reserve currencies.

The moves by the Emirati sovereign wealth funds represent more than just another institutional investment. They confirm statements made in December by BlackRock CEO Larry Fink, who announced at the 2025 DealBook Summit that sovereign wealth funds were strategically using the price correction to build long-term positions. Abu Dhabi is thus positioning itself as a pioneer among sovereign wealth funds worldwide – sending a clear signal to other institutional investors.

The Facts

Mubadala Investment, one of Abu Dhabi's largest sovereign wealth funds, increased its IBIT position from 8,726,972 shares in the third quarter to 12,702,323 shares as of December 31, 2025. This represents an increase of 45.6 percent and a value of over $630 million USD ^[1]. The sovereign wealth fund first established a position in Bitcoin spot ETFs in the fourth quarter of 2024 and has continuously expanded it since.

In parallel, Al Warda Investments, an investment vehicle of the state-owned Abu Dhabi Investment Council (ADIC), increased its IBIT position to 8,218,712 shares – a gain of 3.2 percent compared to the previous quarter ^[1][2]. Although the position shrank from $518 million to $408 million in US dollar terms due to the fallen Bitcoin price, the increase in shares demonstrates unwavering confidence in long-term value appreciation.

Abu Dhabi's strategy fits into a larger picture: BlackRock CEO Larry Fink stated at the December 2025 DealBook Summit that several sovereign wealth funds had bought at price levels of $120,000, $100,000, and even in the $80,000 range. "They're holding it for a certain purpose, but the market is distorted, highly leveraged, and that's why there's more volatility," Fink explained at the time ^[1]. The newly published filings impressively confirm this statement.

An ADIC spokesperson articulated the investment rationale to Bloomberg in November as follows: "We view Bitcoin as a store of value, similar to gold, and as the world increasingly moves toward a digital future, we see Bitcoin playing an increasingly important role alongside gold. Both assets contribute to diversifying our portfolio, and we intend to hold them as part of our short- and long-term strategy" ^[1].

It is also noteworthy that IBIT represents the only position that Al Warda Investments reports in its 13F filings ^[1]. This does not necessarily mean the fund holds no other investments – real estate, private equity, and derivatives are not required to be reported in these documents. Nevertheless, it underscores the strategic importance Bitcoin occupies in the portfolio. Furthermore, the United Arab Emirates is reported to have built up a Bitcoin reserve of just under 6,800 BTC through mining activities by the royal family-controlled company Citadel Mining, equivalent to approximately $450 million USD ^[1].

Analysis & Context

The systematic buying by Abu Dhabi's sovereign wealth funds during the market correction in the fourth quarter of 2025 reveals a fundamental shift in institutional Bitcoin adoption. Unlike short-term oriented traders or speculative investors, sovereign wealth funds typically pursue investment strategies with time horizons spanning decades. Abu Dhabi's explicit positioning of Bitcoin as a store of value alongside gold is historically significant: it marks the recognition of Bitcoin as a monetary asset by one of the world's most capital-rich jurisdictions.

The fact that Mubadala Investment expanded its position by 45.6 percent while the Bitcoin price remained volatile demonstrates a contrarian investment strategy. Sovereign wealth funds traditionally use market dislocations to build strategic positions – a behavioral pattern we know from other asset classes. The parallel purchases at various price levels (from $120,000 through $100,000 down to the $80,000 range) suggest a systematic dollar-cost averaging strategy aimed at optimizing long-term average prices rather than timing short-term market movements.

The geopolitical context is also interesting: The UAE is positioning itself as a forward-thinking financial center and using Bitcoin investments to diversify away from traditional oil revenues. While Western institutions are still partly hesitant, Abu Dhabi demonstrates decisiveness and foresight. This could trigger a domino effect among other sovereign wealth funds, particularly in regions also seeking alternatives to US dollar-dominated reserves. The fact that only Luxembourg's sovereign wealth fund FSIL has publicly known Bitcoin positions to date – albeit in significantly smaller amounts – underscores Abu Dhabi's pioneering role ^[1].

Conclusion

• Abu Dhabi's sovereign wealth funds explicitly view Bitcoin as a long-term store of value alongside gold, not as a speculative trading asset – a fundamental paradigm shift in institutional perception

• The contrarian purchases during the market correction at various price levels demonstrate professional portfolio management and could serve as a blueprint for other sovereign wealth funds

• With combined IBIT positions exceeding one billion US dollars, Abu Dhabi is establishing itself as the largest publicly known state Bitcoin investor worldwide and sending a strong signal to hesitant institutional actors

• The UAE's strategy of building Bitcoin holdings through both ETF investments and mining activities suggests a comprehensive national Bitcoin strategy that goes beyond mere financial speculation

• Larry Fink's confirmed statements about sovereign wealth fund purchases provide the market with more transparency about institutional capital flows and could encourage additional large investors to publicly disclose their Bitcoin positions in the medium term