Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, increased its exposure to crypto during the first quarter of 2025 through additional investment in BlackRock’s spot Bitcoin ETF. A recent filing with the US Securities and Exchange Commission (SEC) revealed that the fund added 491,439 shares of BlackRock’s iShares Bitcoin Trust (IBIT), raising its total holdings to 8,726,972 shares as of March 31. The added position, valued at roughly $28.8 million at the time of the purchase, brought the fund’s total Q1 holding in IBIT to $408.5 million, down from $436.9 million at the end of Q4 due to a dip in IBIT’s market price. Institutional Crypto Appetite for Bitcoin ETFs Grows Despite the quarter-over-quarter decline in valuation, the strategic accumulation has since appreciated in market value. At current prices, Mubadala’s IBIT stake is worth approximately $512 million, highlighting the potential upside of the fund’s increased exposure. BlackRock’s IBIT closed at $58.67 on Thursday, representing a 0.12% daily decline. Mubadala’s decision reflects a growing trend among global institutions moving capital into regulated Bitcoin investment vehicles as part of a long-term asset diversification strategy . Mubadala is among several major institutions that have deepened exposure to IBIT in recent months. Hong Kong-based investment firm Avenir disclosed holdings of 14.7 million IBIT shares at the end of Q1, up from 11.3 million at year-end 2024, valued at $691 million. Citadel Advisors also increased its stake significantly, from 1.1 million to 3.1 million IBIT shares. These positions were revealed through mandatory 13F filings submitted by investment managers with more than $100 million in US equity assets under management. Strategic Conviction and Shifting Allocations Among Major Asset Managers While Citadel’s investments are made under sub-advisory roles or on behalf of external clients, Mubadala holds its shares with full investment discretion, indicating direct management and strategic conviction in Bitcoin’s long-term role. This differentiates Mubadala from firms like Citadel, where holdings may not reflect internal investment views but rather those of clients. BlackRock’s iShares Bitcoin Trust has rapidly grown to dominate the US spot Bitcoin ETF market, pulling in more than $45.5 billion in net inflows since its launch in January 2024. As of the most recent data, the ETF has over $65.4 billion in assets under management. Other large holders of IBIT include Millennium Management, which reduced its holdings to 17.5 million shares (down from 29.8 million), and Goldman Sachs, currently the largest shareholder with 30.8 million shares valued at roughly $1.4 billion. Notably, while some institutions have trimmed exposure, such as the State of Wisconsin Investment Board, which cut its $321 million IBIT position, analysts note this does not signal waning confidence in Bitcoin. Many funds continue to hold or add to other crypto-related positions, such as Strategy and Coinbase. Institutional trading analyst MacroScope emphasized that these shifts often reflect portfolio rebalancing or liquidity management rather than changing long-term outlooks. The steady influx of high-profile entities into Bitcoin ETFs signals continued mainstream adoption and validation of Bitcoin as an investable asset class among sovereign wealth funds and institutional managers. Featured image created with DALL-E, Chart from TradingView
