Abu Dhabi Deepens Bitcoin ETF Exposure Despite Volatility

• Abu Dhabi boosted IBIT holdings to nearly 8M shares, signaling the firm’s long-term conviction.
• Sovereign buyers added Bitcoin ETFs while US spot funds faced sharp November outflows.
• Broader sovereign actions from El Salvador and Kazakhstan support the BTC adoption trend.

Abu Dhabi increased its Bitcoin ETF exposure during the third quarter of 2025 as the Abu Dhabi Investment Council boosted its IBIT holdings from 2.4 million to nearly 8 million shares, according to regulatory filings dated Sept. 30. 

The move took place in the UAE capital while markets faced heavy price swings. The council acted as part of a broader sovereign strategy that emphasized long-term reserves over short-term trading.

Sovereign Capital Expands Bitcoin Allocations

Abu Dhabi’s decision to scale its ETF position came as other Middle Eastern institutions expanded digital-asset allocations. The council raised its IBIT stake to almost 8 million shares, valued at about $518 million at the end of September. 

The previous quarter showed 2.4 million shares, a fast buildup during rising institutional demand. The increase is connected directly to a broader push across sovereign pools. Mubadala, the council’s parent entity, held 8.7 million IBIT shares valued at $567 million during the same period. 

These disclosures showed how sovereign-linked capital treated Bitcoin ETFs as strategic reserves rather than short-term bets. This change is more notable because it comes during increased volatility.

Bloomberg data also listed an average IBIT price of $64.52 per share for the quarter. However, Bitcoin has dropped almost 20% since September, which has pressured related ETF values. This has led to rising outflows and shows how sovereign funds have stayed committed despite short-term traders’ reduced exposure.

Market Outflows Contrast with Sovereign Accumulation

Spot Bitcoin ETFs in the United States recorded almost $3.1 billion in November withdrawals after Bitcoin fell below a key support level in early November. IBIT saw a single-day outflow of $523 million, adding to the sector’s fast cooling. 

These movements followed sharp reversals that erased gains from the early-October rally. However, sovereign entities continued to accumulate positions even as outflows grew. Harvard University also added to IBIT during the same period. 

This trend shows how sovereign-linked investors, pension groups, and major institutions have approached ETFs differently from short-term leveraged traders. Abu Dhabi’s expanding position aligns with long-term diversification plans. 

A spokesperson said Bitcoin and gold supported the council’s reserve strategy and served as store-of-value assets. The council first bought IBIT in February 2025, marking the start of a structured buildup before the third-quarter expansion.

Related: Bitcoin Drop Deepens With Heavy ETF Outflows and Market Fear

Regional Moves Strengthen Bitcoin’s Sovereign Footprint

Abu Dhabi’s buildup is part of a broader change across global sovereign portfolios. El Salvador bought more than $100 million in Bitcoin this week. The Czech central bank made its first purchase. Kazakhstan advanced a plan for a national crypto reserve that could reach $1 billion.

These developments came as Abu Dhabi strengthened its digital-asset presence. MGX, backed by Mubadala, secured a $2 billion Binance position using a stablecoin linked to the Trump family. 

The region has also expanded its regulatory framework and licensed firms such as Bybit, Circle, and Tether. UAE-linked entities such as Citadel Mining and Phoenix Group hold notable BTC reserves, adding to the emirate’s overall exposure.

Leadership changes inside ADIC also support this shift. The council added Alain Carrier, formerly of Canada Pension Plan Investment Board, and Ben Samild, previously chief investment officer at Australia’s sovereign wealth fund. 

Abu Dhabi’s larger IBIT position shows how sovereign-linked capital increases Bitcoin exposure even during increased volatility. The council’s move connects with regional accumulation, global sovereign purchases, and new structural strategies for long-term reserves. These developments show how sovereign entities have expanded allocations even as short-term ETF traders pull back.