Abu Dhabi Triples Its Bitcoin Investment before Market Crash

In the third quarter of 2025 the Abu Dhabi Investment Council (ADIC) took an important move into the Bitcoin space.

Quick overview

  • In Q3 2025, the Abu Dhabi Investment Council (ADIC) significantly increased its holdings in BlackRock's iShares Bitcoin Trust (IBIT) from 2.4 million to approximately 8 million shares, valued at around $518 million.
  • ADIC's investment is part of a long-term diversification strategy, treating Bitcoin as a 'digital gold' asset within its portfolio.
  • Despite a market downturn following Bitcoin's all-time high, analysts view ADIC's increased holdings as a strategic long-term decision rather than a short-term transaction.
  • The growing institutional interest in Bitcoin from entities like ADIC reflects a broader global trend among sovereign funds seeking to hedge against economic instability.

In the third quarter of 2025 the Abu Dhabi Investment Council (ADIC) took an important move into the Bitcoin space. ADIC’s holdings in BlackRock’s iShares Bitcoin Trust (IBIT) more than tripled according to regulatory filings. As of September 30 the council’s holdings had grown from 2.4 million to approximately 8 million shares or roughly $518 million.

One of the most potent sovereign wealth organizations in the world Mubadala Investment Company contains ADIC. The investment according to the fund is a part of a long-term diversification strategy. Bitcoin will be handled similarly to other store-of-value assets in Abu Dhabi’s portfolio said to a spokesman who referred to it as “digital gold.”

Investment Made Prior to the Rise and fall of Bitcoin

The timing is noteworthy. Just a few days before Bitcoin reached an all-time high of $125,100 in early October ADIC finished its purchases. The market drastically turned shortly after. Spot ETFs like IBIT declined as leveraged trades unwound and Bitcoin dropped below $92,000.

IBIT dropped more than 23% at the end of Q3 to about $50.71 from its peak of $71 on October 6.

Analysts view ADIC’s increasing holdings as a long-term strategic decision rather than a short-term transaction despite the downturn.

Institutional Interest Growing in UAE

Abu Dhabi is trying to make itself as a global center for digital assets. Additionally Mubadala stated that he possessed 8.7 million IBIT shares valued at $567 million. During the same quarter IBIT shares were added by other significant organizations such as the endowment of Harvard University.

Experts in cryptocurrency investing in the United Arab Emirates claim that ADIC’s action indicates high institutional trust. According to Zayed Aleem of M2 the purchases demonstrate that the UAE is solidifying its position in the international cryptocurrency market. The investment according to cryptocurrency expert MartyParty shows a conviction in Bitcoin’s long-term store-of-value role.

ETF Withdrawals Following a Market Decline

In November there have been large withdrawals from U.S. Bitcoin ETFs notwithstanding prior institutional purchases. According to Bloomberg outflows have totaled $3.1 billion overall.

The recent performance, according to ETF specialist Eric Balchunas, has been a “ugly stretch,” despite the fact that IBIT has received more than $25 billion in inflows this year.

Global Sovereign Funds Turning to Bitcoin

The interest in Bitcoin in Abu Dhabi is a part of a larger worldwide trend.

El Salvador increased its Bitcoin holdings by more than $100 million this week.

The first cryptocurrency purchase was revealed by the central bank of the Czech Republic.

Kazakhstan is constructing a potential $1 billion national cryptocurrency reserve.

Bitcoin is being seen by major government funds as a hedge against global instability, inflation, and currency risk.

The future of Bitcoin is a topic of debate among analysts. While some expect greater volatility others view the current price range as a chance to make a purchase.It has huge potential for development despite short-term pressure, according to one expert who called it a “close your eyes and buy” zone.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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