A recent filing with the United States Securities and Exchange Commission reveals that the sovereign wealth fund of Abu Dhabi has made a considerable investment in BlackRock’s spot Bitcoin ETF (exchange-traded fund). This acquisition took place in the last quarter of 2024, following BlackRock obtaining a commercial license to operate in Abu Dhabi the previous November.
Abu Dhabi’s Sovereign Wealth Fund Acquires Major Stake in Leading Bitcoin ETF
On February 14th, a 13F filing with the SEC disclosed that Mubadala Investments, one of Abu Dhabi’s sovereign wealth funds, purchased $436.9 million worth of shares in BlackRock’s Bitcoin ETF (ticker: IBIT). This fund operates on behalf of the government of the Middle Eastern city.
In 2024, BlackRock, the world’s largest asset manager with tens of trillions of dollars managed, announced its intentions to expand in the Middle East with a focus on Abu Dhabi and Riyadh. The recent $437 million investment in its Bitcoin ETF underscores BlackRock’s commitment to collaborate with sovereign wealth funds in the region.
Source: SEC
Remarkably, this latest investment isn’t the first instance of Abu Dhabi’s government engaging with cryptocurrencies through its investment vehicles. Back in 2023, the Abu Dhabi Developmental Holding Company and Marathon Digital announced plans to initiate digital asset mining operations in the capital.
Wisconsin State Investment Board Reports $321 Million in Bitcoin ETF Holdings
In the United States, BlackRock’s Bitcoin ETF has also garnered significant attention. On Friday, the State of Wisconsin Investment Board revealed an increase in its exposure to the top cryptocurrency via the exchange-traded fund.
The recent SEC filing indicates that Wisconsin’s pension fund now holds approximately $321 million in spot Bitcoin ETFs, marking an estimated 100% rise from the $164 million holding reported in May 2024.
According to the latest filing, the Wisconsin pension fund initially held around 2.4 million shares (valued at roughly $100 million) of BlackRock’s iShares Bitcoin Trust and 1 million shares (approximately $64 million) of Grayscale’s Bitcoin Trust (GBTC). However, the recent update shows that the pension fund has shifted its entire BTC exposure to BlackRock’s ETF, divesting from Grayscale.
It’s important to note that Bitcoin’s price has risen by nearly 70% since May 2024. Currently, the leading cryptocurrency is valued at about $97,250, reflecting a slight 1% increase in the last 24 hours. Data from CoinGecko indicates that Bitcoin’s price has surged by approximately 90% over the past year.
The price of Bitcoin on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from Getty Images, chart from TradingView
