Bitcoin News Today: Abu Dhabi's Bitcoin Push: Digital Gold Strategy Defies Market Volatility

The Abu Dhabi Investment Council (ADIC), an investment arm of the Mubadala Investment Company, has more than tripled its stake in BlackRock's iShares Bitcoin Trust (IBIT) during the third quarter of 2025, signaling growing institutional confidence in Bitcoin as a long-term asset. According to regulatory filings and reports, ADIC increased its holdings from 2.4 million shares to nearly 8 million shares by September 30, valuing the position at approximately $518 million. This move came just weeks before Bitcoin surged to an all-time high of $126,251 in early October, only to retreat below $92,000 amid a market-wide selloff triggered by leveraged liquidations.

ADIC's decision to expand its Bitcoin exposure aligns with its broader strategy to diversify its portfolio by treating Bitcoin as a "digital equivalent of gold" according to financial analysis. The fund's spokesperson emphasized that Bitcoin and gold both serve as stores of value and are expected to complement traditional assets in its long-term allocation. This rationale mirrors a global trend among sovereign wealth funds, with entities like El Salvador and Kazakhstan also exploring Bitcoin as a strategic reserve asset.

The timing of ADIC's purchase has drawn attention from market analysts. While Bitcoin's price dropped nearly 23% since the end of the third quarter, the council's increased position is seen as a sign of institutional resilience in the face of volatility. Mubadala, which oversees ADIC, separately disclosed holding 8.7 million IBIT shares valued at $567 million as of September 30, maintaining its stake despite the subsequent market downturn. Other institutional players, including Harvard Management Co., also added to their IBIT holdings during the same period.

The move underscores the UAE's ambition to position itself as a global crypto hub. Regulatory frameworks such as the Dubai Virtual Asset Regulatory Authority (VARA) and the Abu Dhabi Global Market (ADGM) have created a structured environment for digital asset adoption, while tax incentives and no capital gains tax further attract institutional capital. The UAE's digital economy strategy aims to double its contribution to GDP by 2031, with over 30% of the population already participating in crypto transactions.

However, the recent market selloff has highlighted challenges. U.S. spot Bitcoin ETFs have seen $3.1 billion in outflows in November alone, with IBIT recording a record $523 million in redemptions after Bitcoin fell below critical price levels. Despite these headwinds, ADIC's investment is viewed as a strategic bet on Bitcoin's role in a digital future. MartyParty, a crypto commentator, noted the position reflects a "store-of-value" perspective, while Zayed Aleem of M2 Treasury called it a "strong signal" of the UAE's growing influence in digital assets.

The UAE's approach to crypto aligns with global regulatory shifts, including its recent removal from the European Parliament's high-risk list for anti-money laundering concerns. As sovereign funds and institutional investors continue to navigate volatility and regulatory clarity, ADIC's move may foreshadow broader adoption of digital assets in traditional portfolios.