Bitcoin News Today: UAE's Bitcoin Stake Triples as Gulf Embraces Digital Gold

The Abu Dhabi Investment Council (ADIC) and its parent sovereign wealth fund, Mubadala Investment Co., have collectively acquired over 16 million shares in BlackRock's iShares Bitcoin Trust ETF (IBIT), signaling a significant institutional bet on the cryptocurrency. ADIC's stake alone has tripled to 8 million shares, valued at approximately $518 million as of September 30, 2025, while Mubadala holds 8.7 million shares, according to regulatory filings and Bloomberg reports. The move positions the UAE as one of the largest government holders of Bitcoin, either through ETFs or direct investments, as the region continues to embrace digital assets.

The iShares Bitcoin Trust ETF, the world's largest crypto ETF with over $70 billion in assets, has seen mixed performance. While the ETF gained 6.2% in the third quarter of 2025, it has since faced outflows totaling $3.1 billion in November alone, including a record $523 million exodus on a single day. ADIC's decision to scale up its position came just before a 20% drop in Bitcoin's value, raising questions about the timing of its investment. An ADIC spokesperson reiterated the fund's long-term strategy, stating that Bitcoin is viewed as a "store of value similar to gold," emphasizing its role in portfolio diversification.

The UAE's foray into Bitcoin aligns with broader regional and global trends. Sovereign wealth funds and governments are increasingly allocating capital to crypto assets as part of diversification strategies. ADIC's mother fund, Mubadala, previously acquired a $2 billion stake in Binance using a stablecoin linked to the family of U.S. President Donald Trump. Meanwhile, Saudi Arabia's recent partnership with WhiteBIT to advance blockchain and CBDC initiatives under Vision 2030 underscores the Gulf's growing influence in digital finance.

The ADIC's investment also reflects Abu Dhabi's ambition to position itself as a crypto hub. The emirate has introduced the Digital Dirham, a central bank-backed stablecoin, and adopted a regulatory framework to attract crypto firms. Mubadala's earlier acquisition of a $2 billion stake in Binance further illustrates the region's appetite for digital assets. However, the recent market volatility has prompted caution among institutional investors. Harvard Management Co. and other entities also increased IBIT holdings in 2025, but the sector's outflows highlight the challenges of managing crypto's inherent price swings.

Market analysts note that ADIC's scale of investment-amid a $1.7 trillion asset base-signals confidence in regulated crypto products. The fund's strategy mirrors that of El Salvador, which made Bitcoin legal tender in 2021 and recently expanded its holdings by $100 million. The Czech Republic's central bank also joined the trend, purchasing cryptocurrencies for the first time in late 2025.

Despite the UAE's bullish stance, the crypto market remains volatile. Bitcoin's recent dip below key technical levels has intensified bearish sentiment, with the RSI indicator approaching oversold territory for major assets like Ethereum and XRP. Institutional investors are repositioning, with "smart money" traders adding short positions in Bitcoin futures.