The Abu Dhabi Investment Council (ADIC) significantly increased its exposure to Bitcoin in the third quarter, nearly tripling its holdings through BlackRock’s spot Bitcoin fund.
The move signals ongoing institutional interest in cryptocurrency within the United Arab Emirates, reflecting a strategic view of Bitcoin as a digital store of value.
Institutional investment during volatile markets
ADIC, the investment arm of Mubadala Investment Company, raised its IBIT holdings from 2.4 million shares at the start of Q3 to nearly 8 million shares by September 30, valuing the position at approximately $520 million. The purchases occurred during a highly volatile period for Bitcoin, just days before the cryptocurrency surged to an all-time high of $125,100 on October 5, then retreated below $90,000.
The fund, BlackRock’s iShares Bitcoin Trust (IBIT), closed Q3 at $65 per share and briefly reached $71 on October 6.
However, ongoing market fluctuations have since dragged the ETF down to $50.71, marking a decline of nearly 23% since the quarter’s end.
Signals of broader adoption
Despite recent losses, ADIC’s increase in IBIT shares is widely interpreted as evidence of continued institutional conviction.
Crypto investment platform M2 Treasury manager Zayed Aleem noted on LinkedIn that it demonstrates “another strong signal that the UAE is securing its place as a global hub for digital assets.”
Similarly, crypto commentator MartyParty mentioned the position as a “strategic bet on Bitcoin’s role as a store of value.”
The timing also underscores the divergence between short-term volatility and long-term institutional strategy. While Bitcoin and crypto-related stocks have suffered in recent weeks, investment patterns like ADIC’s suggest that major institutions continue to view digital assets as essential components of diversified portfolios.
ETF performance and market context
IBIT has faced notable outflows amid market turbulence. According to Farside, the ETF recorded its largest single-day outflow since its January 2024 launch—$523.2 million, coinciding with Bitcoin briefly dipping to $88,000. ETF analyst Eric Balchunas described the fund’s recent performance as an “ugly stretch,” while noting that year-to-date flows remain substantial at +$25 billion across BTC ETFs.
Since its launch, IBIT has posted net inflows of roughly $63.12 million. The ETF’s performance highlights a common pattern in institutional crypto investing: temporary drawdowns do not necessarily deter long-term positioning, particularly when Bitcoin is considered a digital store of value akin to gold.
Strategic outlook
Analysts remain divided on Bitcoin’s trajectory for the remainder of 2025. Some, like crypto analyst VICTOR, suggest the current drawdown represents a “close your eyes and bid type of range,” signaling opportunities for disciplined investors to accumulate positions during volatility. ADIC’s actions may encourage other institutional players to adopt similar strategies, particularly in regions like the UAE where regulatory clarity and infrastructure support are growing.
Tanya Petrusenko
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