Al Warda Investments, overseen by the Abu Dhabi Investment Council, has drastically intensified its Abu Dhabi investment in Bitcoin during the third quarter of this year. An official spokesperson confirmed to Bloomberg that this strategic maneuver seeks to diversify the state portfolio, viewing the digital asset as a store of value comparable to gold. This move comes at a crucial time, just as the market was looking to consolidate new all-time highs.
Documents filed with the Securities and Exchange Commission reveal a 230% increase in the firm’s stake in the iShares Bitcoin Trust (IBIT). The entity now holds just under 8 million shares, bringing the total value of the position to 517.6 million dollars. This substantial increase, executed through the Al Warda investment vehicle, highlights a significant shift in sovereign capital allocation toward regulated financial products in the United States, moving away from traditional strategies.
Historically, the Investment Council, a subsidiary of Mubadala Investment Co., has focused on private markets such as corporate buyouts, infrastructure, and real estate. However, this new direction underscores an adaptation toward a more digitized future, where the leading asset plays a crucial role alongside gold. The institutional vision is clear: both assets contribute to long-term stability, fully integrating into both immediate and future diversification strategies of the sovereign fund to mitigate global risks.
Will other sovereign funds follow the institutional example given current volatility?
This injection of institutional capital joins a growing wave of interest from major global players and academics. On the other hand, Harvard’s endowment fund recently revealed a 443 million dollar position in the same ETF, representing nearly 20% of its reported public holdings in the United States. Although Bitcoin reached a record near 126,000 dollars in October before sliding below 90,000 dollars in November, confidence from entities of this caliber reinforces the asset’s legitimacy in the face of market fluctuations.
The 30% decline from recent highs has hit general interest in exchange-traded funds, generating notable outflows like those recorded on November 18. However, Abu Dhabi’s firmness suggests a perspective that transcends the short-term volatility of cryptocurrencies. As the financial world evolves, the continued bet on these instruments could signal market maturity, where strategic accumulation prevails over momentary fear.
