Abu Dhabi's ADIA Invests $455M in BlackRock's Bitcoin ETF

Abu Dhabi's sovereign wealth fund has revealed in a new filing with the U.S. Securities and Exchange Commission (SEC) that it owns approximately $455 million worth of BlackRock's Bitcoin exchange-traded fund (ETF), iShares Bitcoin Trust ETF (IBIT). This significant investment underscores the growing interest of institutional investors in the cryptocurrency market.

The Abu Dhabi Investment Authority (ADIA), established in 1976, is responsible for managing the emirate's surplus funds and promoting economic stability and prosperity. In December 2023, Reuters reported that ADIA had surpassed Saudi Arabia's Public Investment Fund to become the world's top wealth fund spender.

BlackRock's iShares Bitcoin Trust ETF, launched in January 2024, has quickly become the largest ETF by market capitalization based on the flagship digital asset. In November 2023, it was discovered that IBIT had surpassed its gold counterpart in terms of net assets, despite BlackRock's gold ETF launching nearly two decades earlier.

BlackRock secured its commercial license to operate in Abu Dhabi in 2023, stating that the move was aimed at working more closely with sovereign wealth funds, wealth managers, and investment vehicles in the region. Charles Hatami, head of the Middle East for BlackRock, told Bloomberg that Abu Dhabi's rapid transformation into a global financial center, strategic location, proactive government policies, and commitment to sustainable growth make it an ideal location for capital markets.

At the time of writing, IBIT is trading at $55.41, representing a 1.2% increase over the last 24 hours. This news comes as the cryptocurrency market continues to gain traction among institutional investors, with more funds exploring the potential of Bitcoin and other digital assets.