Mubadala Boosts BlackRock Bitcoin Trust Stake by 47%

Mubadala, a prominent sovereign wealth fund, has significantly increased its investment in BlackRock’s iShares Bitcoin Trust (IBIT) ETF, raising its stake to 8.7 million shares valued at $408.5 million by the end of March 2025. This represents a 47% increase in ownership compared to its position in December 2024, with the fund adding 491,439 shares during the first quarter of 2025.

Mubadala’s decision to boost its stake in the Bitcoin Trust is part of its strategy to enter the rapidly evolving cryptocurrency sector through a regulated and secure investment vehicle. The IBIT ETF, launched in January 2024, offers investors a reliable and government-sanctioned way to gain exposure to Bitcoin without directly purchasing the cryptocurrency. This approach allows Mubadala to benefit from Bitcoin’s price movements while avoiding the complexities of cryptocurrency custody and regulatory compliance.

BlackRock’s IBIT ETF has attracted significant attention from institutional investors due to its liquidity and efficiency. The ETF’s shares were priced at approximately $58.67 each in May 2025, with an average daily trading volume exceeding 33 million shares. This liquidity is a key factor that influenced Mubadala’s decision to invest in the IBIT ETF.

Mubadala’s investment in IBIT is one of the most substantial sovereign wealth fund investments in a Bitcoin ETF to date. The fund, which manages over $300 billion in assets, has gradually increased its holdings in the IBIT ETF over the past few quarters. At the end of 2024, Mubadala owned 8.2 million shares of the Bitcoin ETF, valued at $436 million. The fund’s continued investment in IBIT demonstrates its confidence in Bitcoin as a long-term investment, even during market fluctuations.

Mubadala’s public disclosure of its Bitcoin ETF investment is unusual, as most sovereign wealth funds prefer to keep their cryptocurrency-related transactions private. This transparency highlights the fund’s commitment to Bitcoin and its belief in the potential of the cryptocurrency market. Mubadala’s investment in IBIT aligns with a broader trend of increasing institutional interest in Bitcoin ETFs. Other major players, such as Brown University and the State of Michigan, have also revealed investments in IBIT through their first-quarter SEC filings.

However, not all institutions are increasing their Bitcoin ETF holdings. The State of Wisconsin Investment Board recently divested all 6 million shares of IBIT that it had purchased as a pioneer of Bitcoin ETFs. Despite this, Bitcoin continues to gain acceptance among institutional investors. According to Eric Trump, a number of major players around the world are competing to acquire Bitcoin, indicating a growing institutional interest in the cryptocurrency.