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- Wisconsin and Abu Dhabi’s sovereign funds have increased their investments in Bitcoin ETF.
- Abu Dhabi’s investment aligns with its crypto-friendly regulations, and the region continues to position itself as a hub for digital assets.
The State of Wisconsin Investment Board (SWIB) and Abu Dhabi’s Mubadala Investment Company recently increased their Bitcoin ETF investments significantly. Wisconsin’s recent SEC 13F filing for Q4 2024 revealed that the state has invested in cryptocurrency by owning over 6 million shares of BlackRock’s iShares Bitcoin Trust, IBIT, worth $588 million. Mubadala invested $436.9 million in IBIT as the institutions continue to bet on Bitcoin ETFs.
*ABU DHABI'S SOVERIGN WEALTH FUND BOUGHT $436M OF BITCOIN ETFS IN Q1
*ABU DHABI'S MUBADALA DISCLOSES ISHARES BITCOIN ETF HOLDINGS IN 13F
— db (@tier10k) February 14, 2025
Wisconsin was the first sovereign fund in the United States to invest in Bitcoin ETFs. Its first acquisition occurred in March 2024, in which it acquired nearly 95,000 shares of IBIT. As of August, it possessed 2.9 million shares; more recent disclosures indicate another 3.1 million shares were purchased. This increase can be attributed to the recent increase in institutional involvement in the digital assets market.
Similarly, other large financial institutions have also integrated the recommendations into usual practice. Barclays revealed that it invested $131 million in the company, while firms such as Goldman Sachs and JP Morgan added further Bitcoin ETF holdings. Avenir Group Holdings also owns $599 million in IBIT trading shares, which gives the ETF a strong market competitive position.
Mubadala’s Strategic Investment in Bitcoin ETFs
This investment is in tandem with Abu Dhabi’s broader plan to include digital assets in its economy. The UAE has established a regulatory structure, beginning with the Securities and Commodities Authority’s Decision No. (23) of 2020 on regulating accredited digital asset establishments. More recent regulations, such as the Administrative Decision No. (11) adopted in 202,1 and Resolution No. (111) of 2022 has enhanced the regulation of digital assets.
Dubai’s Virtual Assets Regulatory Authority (VARA) ensures that companies meet the legal requirements. According to Dubai’s VASP law, companies must obtain the Initial Approval and a full operative license, which is renewable annually. These measures are meant to support the UAE’s drive to become a world-leading hub for digital assets.
Mubadala’s investment in IBIT is not an isolated phenomenon in the institutional investment world. The UAE is steadily trying to adopt blockchain technology through investments in Bitcoin mining and infrastructure. As CNF reported, Abu Dhabi signed an agreement with MARA Holdings and Zero Two in 2023 to build a vast Bitcoin mining facility. The government’s decision to invest in Bitcoin through ETFs goes beyond the speculative aspect of cryptocurrency investments.
Institutional Adoption Accelerates Bitcoin Market Growth
The entry of sovereign wealth funds into Bitcoin ETFs is significant because it might signal the entry of other institutional investors. Changpeng Zhao, the former CEO of Binance, hinted that more funds from Abu Dhabi are likely to invest in Bitcoin, following the trail blazed by Mubadala.
The United States policy could also be affected, as pointed out by Anthony Pompliano, an advocate for Bitcoin. He said that the recent acquisition of $1.1 billion worth of Bitcoins by Abu Dhabi could spur the United States to have the same status of the same. More institutional investments in Bitcoin ETFs show that digital currencies are slowly becoming incorporated into conventional financial systems.
