Abu Dhabi’s leading wealth funds have significantly increased their interest in digital assets. The most recent data shows these funds collectively hold more than $1.1 billion in assets in BlackRock’s iShares Bitcoin Trust.
Huge Purchase from Abu Dhabi’s State-Backed Funds
Mubadala Investment Company and Al Warda Investments appear to own over 20 million shares in the iShares Bitcoin Trust, according to recent 13F reports filed with the U.S. Securities and Exchange Commission (SEC). Mubadala holds 12.7 million shares as of December 31, 2025. This portfolio is worth approximately $631 million, representing a 46 percent increase from the 8.7 million shares in the previous quarter. On the same date, Al Warda Investments made an investment of approximately 408 million dollars with 8.2 million shares in hand. The position of the two institutions, which reached a total of 20.9 million shares, is based on a “triple-down” investment strategy that will accelerate from the last quarter of 2025.
By the end of the year, Mubadala announced an investment of $631 million with 12.7 million IBIT shares. This figure represents a 46 percent increase from 8.7 million shares at the end of September.
Mubadala Investment Company is a large government investment fund headquartered in Abu Dhabi and operating globally. Its portfolio size is over 330 billion dollars. Al Warda Investments serves as a specialized investment company within the Abu Dhabi Investment Council.
Bitcoin Strategy and Market Dynamics in Institutional Portfolios
Abu Dhabi’s moves on this scale are seen as a major milestone in the United Arab Emirates’ strategy to become the global hub for regulated blockchain infrastructure. Institutional analysts state that the country considers Bitcoin as digital gold and highlights this asset in long-term portfolio diversification. This approach is considered as part of the steps to reduce dependence on oil revenues. Despite the recent sharp fluctuations in Bitcoin prices, it is noteworthy that these large-scale investments are protected.
New Steps in Digital Finance Infrastructure and Expanding ETF Investments
The steps taken by Abu Dhabi in the field of digital assets are not limited to Bitcoin. Recently, the Central Bank of the United Arab Emirates approved the issuance of DDSC, a dirham-indexed stablecoin. This new asset is on the institutional Layer-2 network called ADI Chain and aims to simplify large volume payments and treasury transactions for regulated financial institutions. The initiative is supported by First Abu Dhabi Bank and IHC, one of the country’s largest financial institutions.
On the other hand, ETHA, BlackRock’s spot Ethereum ETF, also saw significant demand at the beginning of the year. According to Farside Investors data, on January 5, 2026, ETHA received a net inflow exceeding $100 million. This development was the primary driver of total net flows of over $165 million on the same day in the spot Ethereum ETF market in the US.
The strong performance recorded in ETHA highlights BlackRock’s role in the digital asset market and points to increased interest from institutional investors in Ethereum. It is reported that corporate demand continues despite the volatility in the market.
