Abu Dhabi's $461M Bitcoin Bet: The Tip of the Iceberg?

Abu Dhabi's sovereign wealth fund, Mubadala Investments, has emerged as the seventh-largest holder of BlackRock's Bitcoin ETF (IBIT), with a $461 million investment in the fourth quarter of 2024. This significant move has fueled speculation that Abu Dhabi may have as much as $40 billion in Bitcoin holdings, given its status as one of the Emirates of the UAE.

Bloomberg ETF analyst James Seyffart commented on the update, stating, "The rumors were not just rumors!" Interestingly, the UAE has not officially disclosed or notified its Bitcoin stash. Binance founder CZ suggested that the reported $461 million Bitcoin holding could be just the tip of the iceberg for Abu Dhabi alone, as there are a few other sovereign wealth funds in the region.

David Bailey, CEO of Bitcoin Magazine, revealed that Abu Dhabi has more holdings than stated and that other Gulf Cooperation Council (GCC) members are now following suit. He hinted that the update could have been announced at the BitcoinMENA conference but was not ready at the time.

The news has sparked calls for the U.S. to establish or include a National Bitcoin Reserve in President Trump's recently announced sovereign wealth fund (SWF). Bailey also speculated that President Trump's Commerce Secretary pick, Howard Lutnick, could follow the UAE's example and include Bitcoin in the United States' SWF.

The Bitcoin Policy Institute, an advocacy group for the cryptocurrency, echoed these calls, suggesting that the U.S. could use the approximately 200,000 Bitcoins already in federal custody from law enforcement seizures to allocate these holdings as seed capital for the SWF without requiring new taxpayer funding.

Despite the bullish updates and apparent 'nation-state' moves on Bitcoin, the cryptocurrency remained muted at press time. It has struggled below $100,000 for ten days now, with the crypto valued at $97,000 or 12% from its all-time high at press time.