The Abu Dhabi Investment Council (ADIC) nearly tripled its Bitcoin exposure in the third quarter through BlackRock’s spot Bitcoin ETF, according to a new report.
The move was widely interpreted by market observers as a sign that institutional appetite for crypto continues to strengthen in the United Arab Emirates.
ADIC — an investment arm of Mubadala Investment Company — told Bloomberg on Wednesday that it views Bitcoin as the digital counterpart to gold.
The fund’s increased allocation to BlackRock’s iShares Bitcoin Trust (IBIT) came during a volatile stretch for the crypto market. The quarter ended just days before Bitcoin surged to a record high of $125,100 on Oct. 5, only to fall back below $90,000 by Wednesday.
IBIT retreats after Q3 surge
Bloomberg reported that ADIC boosted its IBIT holdings from 2.4 million shares at the start of Q3 to nearly 8 million by Sept. 30, valuing the position at roughly $520 million. IBIT closed the quarter at $65 per share and climbed to $71 on Oct. 6, the day after Bitcoin hit its all-time high.
Bitcoin’s sharp drop below $100,000 has weighed heavily on BlackRock’s iShares Bitcoin Trust (IBIT), which closed Wednesday at $50.71 — down roughly 23% since the end of the third quarter.
Even so, ADIC’s increased exposure has been widely interpreted as another sign of strengthening institutional adoption.
Zayed Aleem, treasury manager at crypto investment platform M2, said in a LinkedIn post Wednesday that it’s “fantastic to see such institutional conviction and another strong signal that the UAE is securing its place as a global hub for digital assets.”
Crypto commentator MartyParty echoed that view, noting that the position “reflects a strategic bet on BTC’s role as a store of value.”
The development follows IBIT’s largest single-day outflow since its launch in January 2024 — $523.2 million on Tuesday, according to Farside — as Bitcoin briefly dipped to $88,000. As of publication, Bitcoin is trading at $92,089, per CoinMarketCap.
IBIT enters an ‘ugly stretch’
ETF analyst Eric Balchunas said Wednesday that IBIT is enduring an “ugly stretch.”
“Although YTD flows are still an astronomical +$25 billion (sixth overall),” he noted. “All told, $3.3 billion has exited Bitcoin ETFs over the past month, around 3.5% of total AUM.”
Since launching in January 2024, IBIT has recorded around $63.12 million in net inflows, according to Farside.
Analysts remain split on Bitcoin’s outlook for the rest of the year. Bitcoin analyst VICTOR described the current market weakness as “the close your eyes and bid type of range.”
