The UAE's national investment fund, Mubadala, has increased its holdings of Bitcoin ETFs to 45%

Bitcoin Treasury Taste

In a move demonstrating strong confidence amid Bitcoin's sharp correction, Abu Dhabi-based Mubadala Investments – the UAE's leading sovereign wealth fund – significantly increased its holdings of spot Bitcoin through BlackRock's iShares Bitcoin Trust (IBIT). The latest 13F filing with the U.S. Securities and Exchange Commission, published on February 17, shows Mubadala holding 12,702,323 shares of IBIT as of December 31, 2025, valued at approximately $630.6 million.

• Mubadala's position: 12.7 million IBIT shares → ~$630.6 million (value at the end of 2025).

• Growth: +46% compared to the previous quarter (from 8.7 million shares).

• Related entity: Al Warda Investments (affiliated with Abu Dhabi Investment Council, a subsidiary of Mubadala) holds 8.2 million shares worth approximately $408 million , a slight increase from before.

• Total investment in Abu Dhabi: Over 20 million IBIT shares, totaling over $1.1 billion as of December 31, 2025 (currently around $800 million in the context of price fluctuations in 2026 , assuming no further changes).

Mubadala's aggressive accumulation – adding nearly 4 million shares – positions it as a classic "buy on dips" strategy from one of the world's most sophisticated institutional investors , managing over $330 billion in assets across technology, infrastructure, healthcare, private equity, and the stock market.

Diversification of "Digital Gold"

Mubadala's increased investment aligns with the UAE's broader ambition to diversify its economy beyond its reliance on oil and position Abu Dhabi as a global hub for emerging technologies , including blockchain and digital assets. The fund views Bitcoin as " a store of value similar to gold ," according to statements from the entities involved, reflecting a growing consensus among institutions on the role of cryptocurrencies in hedging against inflation, currency devaluation, and geopolitical instability.

This isn't Mubadala's first investment: Previous positions in IBIT have been significant, and related funds (e.g., MGX, co-founded by Mubadala) have invested billions of dollars in cryptocurrency infrastructure like Binance.

The recent increase in investment amid a market downturn underscores long-term confidence rather than short-term speculation. In the macroeconomic environment—record levels of global uncertainty, trade adjustments, geopolitical tensions, and policy shifts—this allocation aligns with the pattern of sovereign wealth funds seeking asymmetric risk hedging. Bitcoin's uncorrelated nature (compared to traditional assets) offers diversification benefits in a multi-crisis environment.

Motivation from organizations

The scale of Mubadala sends a strong signal. As national investment funds (with a multi-decade vision) increase their investments in managed Bitcoin instruments, it normalizes cryptocurrency as a core allocation asset class—potentially accelerating capital flows from pension funds, endowment funds, and other national investment funds.

Spot Bitcoin ETFs have absorbed a massive amount of institutional capital since their approval in 2024. Mubadala's buying has helped offset outflows from individual investors during the downturn, contributing to price stability. IBIT remains a liquidity magnet, with BlackRock's infrastructure enabling seamless scaling.

Positive impacts on on-chain products (e.g., Coinbase's recent expansion of cryptocurrency-backed loans to altcoins) and Layer 2 ecosystems like Base, along with perceived reduced legal risk and the increasing legitimacy of "digital gold," reinforce Bitcoin's dominance narrative during times of uncertainty.

Valuations have declined since late 2025 due to the continued weakness of BTC—highlighting its volatility. National investment funds may be able to withstand price drops, but individual/institutional investors could face heavier losses without a similar perspective.

Our review

Mubadala's report of a 45% increase in Bitcoin holdings in its ETFs to $630 million reflects significant support for digital assets in national portfolio construction. This underscores the maturation of Bitcoin as an investable asset class through regulated means.

Mubadala's report of a 45% increase in Bitcoin holdings in its ETFs to $630 million reflects significant support for digital assets in national portfolio construction. This underscores the maturation of Bitcoin as an investable asset class through regulated means.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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