Abu Dhabi Funds Pass $1B Mark in BlackRock Bitcoin ETF Now
- Mubadala lifted IBIT holdings to 12.7M shares after aggressive Q4 accumulation now.
- Al Warda ended Q4 with 8.2M IBIT shares, up from 7.96M 3 months earlier, per the report.
- Together, the funds topped $1B in 2025, yet Bitcoin’s 2026 drop cut the value near $800M.
Two Abu Dhabi-linked investment funds built more than $1 billion in exposure to BlackRock’s spot Bitcoin ETF by the end of 2025, even as Bitcoin declined sharply. Regulatory filings show Mubadala Investment Company and Al Warda Investments increased their stakes in BlackRock’s iShares Bitcoin Trust during a quarter when Bitcoin fell about 23%. Their combined position later dropped to roughly $800 million as Bitcoin slid another 23% year-to-date in 2026.
Sovereign Funds Increase IBIT Exposure
Mubadala Investment Company, a sovereign wealth fund backed by the Abu Dhabi government, added nearly four million shares of BlackRock’s iShares Bitcoin Trust between October and December 2025. The purchases lifted its total holdings to 12.7 million shares.
The fourth-quarter 13F filing shows Mubadala increased its IBIT shares by 46% compared with the third quarter. For much of 2025, the fund held more than eight million shares before expanding its position.
Mubadala first bought IBIT in late 2024 and has added shares since then. The latest increase came during a quarter when Bitcoin declined roughly 23%, according to market data referenced in the filings.
At the same time, Al Warda Investments, another Abu Dhabi-based firm managing diversified global assets for government-related entities, also expanded its exposure. It held 8.2 million IBIT shares at the end of the fourth quarter, up from 7.96 million shares three months earlier.
Together, the two funds controlled more than $1 billion worth of Bitcoin exposure through IBIT at the end of 2025. With Bitcoin down another 23% in early 2026, the value of those holdings fell to just over $800 million as of Tuesday, assuming no further purchases.
Market Context and ETF Trends
BlackRock’s iShares Bitcoin Trust stands as the largest spot Bitcoin ETF, with about $58 billion in assets under management. The fund’s value declined in recent months as Bitcoin prices weakened. Across the broader market, Bitcoin ETFs have shed more than $21 billion in assets this year. That trend contrasts with the steady accumulation reported by the two Abu Dhabi funds.
Meanwhile, the crypto market has faced several headwinds in early 2026, including low volatility, reduced retail participation, and macroeconomic uncertainty. Despite those conditions, the filings show that the two funds have not sold their IBIT shares.
BlackRock’s head of digital assets, Robert Mitchnick, addressed ETF activity on a recent panel. He said many assume hedge funds using ETFs drive volatility and heavy selling, but that perception does not match what BlackRock observes. Instead, he stated that IBIT holders remain invested for the long term.
The continued holdings from Mubadala and Al Warda align with that observation. Their positions remained intact despite falling prices, even as overall ETF assets declined.
Related: BlackRock Targets Bitcoin Income Play With Covered-Call ETF Filing
Institutional Adoption Through Regulated Products
Since the launch of spot Bitcoin ETFs in 2024, institutions have used them as a regulated entry point into digital assets. The ETF structure removes the need for direct custody or wallet management. By holding IBIT, the Abu Dhabi funds gained liquid and regulated exposure to Bitcoin without managing private keys. The structure also allows institutions to integrate digital assets within existing portfolio frameworks.
At the end of 2025, the combined allocation exceeded $1 billion. By mid-February 2026, price declines reduced that figure to roughly $800 million, showing how quickly valuations can shift in crypto markets.
Sovereign wealth funds maintain a tendency to invest large amounts of their capital. The filings from these state-backed investors show their current approach, which involves treating regulated Bitcoin products as components of their worldwide investment portfolios. The institutional Bitcoin market will transform if other sovereign funds adopt identical investment methods.
The regulatory documents from Mubadala Investment Company, together with Al Warda Investments, show their higher market exposure during the market decline. BlackRock uses its IBIT product to create Bitcoin exposure, which continues to drive its investment strategy despite Bitcoin price changes and decreasing ETF assets throughout the industry.
