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Coinpaprika 2025-02-17 07:31:40

Abu Dhabi’s Mubadala Invests $436M in BlackRock’s Bitcoin ETF

Abu Dhabi’s Mubadala Sovereign Wealth Fund has made a major move into Bitcoin by investing $436 million in BlackRock’s iShares Bitcoin ETF (IBIT). This acquisition, disclosed in a February 14 SEC filing, highlights the fund’s growing interest in digital assets and positions it as the seventh-largest known holder of IBIT. Mubadala’s investment secured over 8.2 million IBIT shares in the fourth quarter of 2024, marking its first reported position in the ETF . The fund now joins a list of major institutional investors, including Goldman Sachs, Millennium Management, and Symmetry Investments. Bloomberg ETF analyst James Seyffart noted that this move reinforces Bitcoin’s increasing adoption among large financial entities. Binance founder Changpeng Zhao pointed out that Mubadala is just one of Abu Dhabi’s sovereign wealth funds, hinting that other state-backed investment firms might also be exposed to Bitcoin ETFs. Analysts suggest this aligns with the UAE’s broader strategy to establish itself as a global blockchain hub . Abu Dhabi has positioned itself as a prime destination for crypto businesses, introducing progressive regulations that attract industry leaders looking for a supportive investment environment. Mubadala’s decision reflects a wider trend of institutional Bitcoin adoption worldwide. Some policymakers have even proposed that Bitcoin be considered as part of strategic financial reserves. US Senator Cynthia Lummis reacted to Mubadala’s investment by stating that a global Bitcoin race is underway. “I told you the race was on. It’s time for America to win,” she posted on X. Lummis has introduced the Bitcoin Act of 2024, which proposes selling a portion of the US government's gold reserves to acquire Bitcoin. The bill aims to secure 1 million BTC , representing approximately 5% of the total supply. Although the federal government’s stance remains uncertain, multiple US states have taken independent steps toward integrating Bitcoin into their financial systems. Over 20 states have introduced or passed legislation to support cryptocurrency investments. Industry leaders see these efforts as a sign that the US is on track to becoming a leading pro-Bitcoin nation, driven by state-level initiatives and growing institutional interest.

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