Abu Dhabi Funds Increase Bitcoin ETF Holdings Despite Market Dip

Abu Dhabi’s sovereign wealth funds are signaling continued, and potentially growing, interest in Bitcoin, despite recent market volatility. Regulatory filings reveal that both Mubadala Investment Company and Al Warda Investments increased their holdings in BlackRock’s iShares Bitcoin Trust (IBIT) during the fourth quarter of 2025, a period when the cryptocurrency experienced a significant price decline.

Mubadala, backed by the Abu Dhabi government, added nearly four million shares of IBIT between October and December, bringing its total stake to 12.7 million shares, according to filings with the U.S. Securities and Exchange Commission. This move occurred as Bitcoin’s price fell roughly 23% during the quarter. Mubadala initiated its purchases of IBIT in late 2024 and has been consistently adding to its position.

Al Warda Investments, another Abu Dhabi-based investment firm managing global assets for government-related entities, also increased its IBIT holdings, albeit modestly. The firm held 8.2 million shares at the end of the fourth quarter, up from 7.96 million shares in the preceding three months.

Combined, the two funds held more than $1 billion worth of Bitcoin through IBIT at the close of 2025. However, with Bitcoin experiencing a further 23% decline in value year-to-date in 2026, the current estimated value of their combined holdings has fallen to just over $800 million as of Tuesday, February 17, 2026. This calculation assumes no additional purchases were made in 2026.

The increased investment by these Abu Dhabi funds underscores a growing institutional appetite for regulated exposure to Bitcoin, even during periods of market stress. BlackRock’s IBIT, launched in early 2024, has rapidly become the dominant vehicle for such exposure in the United States, attracting significant capital from a range of investors.

The timing of these investments is notable. While the broader cryptocurrency market has faced headwinds in early 2026 – including reduced retail participation and macroeconomic uncertainty – these sovereign wealth funds appear to be taking a long-term view, utilizing the downturn as an opportunity to build positions in a regulated and liquid product tied to digital assets.

The move contrasts with some other institutional investors who have reduced their Bitcoin exposure. This divergence suggests differing investment strategies and risk tolerances within the institutional landscape.

Robert Mitchnick, head of digital assets at BlackRock, recently addressed concerns about volatility stemming from ETF activity. He stated that observations at BlackRock do not support the belief that hedge funds using ETFs are driving heavy selling or increased volatility, suggesting that IBIT holders are primarily long-term investors. This perspective aligns with the strategic approach demonstrated by Mubadala and Al Warda.

The increased allocation to IBIT by these Abu Dhabi funds represents a significant vote of confidence in the potential of Bitcoin as a strategic asset, and in the infrastructure being built around it. The funds’ willingness to invest during a downturn suggests they view the current market conditions as a buying opportunity, anticipating future growth in the digital asset space. The long-term implications of this investment will depend on the future performance of Bitcoin and the continued development of the regulatory landscape surrounding digital assets.

The combined holdings of Mubadala and Al Warda in IBIT, while representing a relatively small percentage of their overall portfolios, signal a growing acceptance of digital assets as a legitimate investment class among sovereign wealth funds. This trend could encourage other institutional investors to explore similar opportunities, potentially driving further demand for Bitcoin and other cryptocurrencies.

As of February 13, 2026, BlackRock’s IBIT managed $52.4 billion in assets, demonstrating the substantial institutional interest in regulated Bitcoin exposure. The fund’s continued growth will likely be a key indicator of the broader adoption of digital assets by institutional investors in the coming months and years.