Bitcoin News Today: Abu Dhabi's Bitcoin Push: Diversifying a $1.7T Wealth Complex Beyond Oil

Abu Dhabi's sovereign wealth fund, the Abu Dhabi Investment Council (ADIC), significantly expanded its Bitcoin exposure in the third quarter of 2025, tripling its stake in BlackRock's iShares Bitcoin Trust to 8 million shares, valued at approximately $518 million as of Sept. 30. The move, disclosed through regulatory filings, underscores the emirate's long-term confidence in Bitcoin as a "digital store of value," comparable to gold, despite recent market volatility that saw the cryptocurrency fall over 20% from its late-October peak.

ADIC's strategic accumulation began with an initial $436.9 million investment in IBIT in February 2025, but the Q3 expansion marked a pivotal escalation. The council's position now ranks among the largest institutional holdings in U.S.-listed Bitcoin ETFs, particularly when combined with Mubadala Investment Company, Abu Dhabi's flagship sovereign wealth fund, which maintained its 8.7 million-share stake. Together, the entities hold roughly 16.7 million shares, representing approximately $1.085 billion in exposure.

The timing of ADIC's purchases, however, coincided with a sharp market reversal. Bitcoin surged to an all-time high of $126,000 on Oct. 5, only to retreat below $90,000 by late November, dragging down IBIT's performance. The ETF recorded a single-day outflow of $523 million in November-the largest since its January 2024 launch-contributing to $3.1 billion in monthly redemptions across Bitcoin ETFs. Despite these challenges, ADIC emphasized its commitment to a "long-horizon transition away from oil-based revenue streams," aligning with broader diversification strategies in Abu Dhabi's $1.7 trillion wealth complex.

The council's move reflects growing institutional interest in regulated crypto products. Harvard Management Co. and other major investors also increased IBIT holdings during Q3, though recent outflows highlight cautious sentiment. ETF analyst Eric Balchunas noted that while year-to-date inflows for IBIT remain strong at $25 billion, the past month's $3.3 billion in redemptions signals "an ugly stretch" for the sector.

Market analysts remain divided on Bitcoin's near-term trajectory. Some view the current price range as an accumulation opportunity, while others warn of sustained volatility. The end of the U.S. government shutdown has reignited hopes for new crypto ETF approvals in 2026, with Bitwise's Matt Hougan predicting over 100 product launches, including index-based offerings.

Meanwhile, Abu Dhabi's dual approach-combining ETF allocations with direct mining investments via Citadel and Marathon Digital-positions the emirate as a key player in both institutional and on-chain Bitcoin adoption https://coinedition.com/abu-dhabi-fund-triples-bitcoin-exposure-to-500m-ahead-of-market-dip/.