Rising exposure to the IBIT ETF by Abu Dhabi’s sovereign ecosystem underscores how major institutions are repositioning around bitcoin-linked products despite sharp price volatility.
Summary
Why did Al Warda triple its IBIT position in Q3?
Al Warda Investments, an investment vehicle overseen by the Abu Dhabi Investment Council (ADIC), more than tripled its holdings of BlackRock’s iShares Bitcoin Trust ETF (IBIT) in the third quarter, just as bitcoin was approaching October’s record high.
The firm boosted its stake by 230%, taking its allocation to just under 8 million IBIT shares valued at exactly $517.6 million, according to a filing with the U.S. Securities and Exchange Commission. This aggressive move, executed as the market rallied, signals rising confidence in exchange-traded bitcoin exposure.
How does this move fit ADIC’s strategy on digital assets?
The Abu Dhabi Investment Council is a subsidiary of Mubadala Investment Co., one of the emirate’s primary sovereign-wealth groups. Traditionally, the council has focused on private market strategies, including buyouts, infrastructure and real estate, so a large public-market allocation to a bitcoin fund marks a notable shift.
However, ADIC framed the decision as a logical extension of its diversification strategy rather than a speculative pivot.
In comments to Bloomberg, a spokesperson said the council views bitcoin as a “store of value similar to gold” and expects it to remain part of both its near and long term asset mix.
Moreover, ADIC highlighted that both gold and bitcoin contribute to portfolio diversification in a world that is “moving toward a more digital future.” That said, the council did not disclose any direct spot holdings of the cryptocurrency itself, focusing instead on regulated fund structures.
What does this say about the ‘bitcoin as store of value’ thesis?
The statement that bitcoin can act as a store of value similar to gold reinforces a narrative that has attracted other large allocators. It suggests that ADIC, through Al Warda, sees long-term merit in maintaining exposure even as short-term prices swing sharply.
This positioning mirrors the broader institutional debate around digital scarcity, inflation hedging and the role of tokenized assets in multi-asset portfolios. However, by using a U.S.-listed ETF structure, the council can access that thesis within a familiar regulatory framework.
How did price moves and flows shape the timing?
The ramp-up in Al Warda’s stake came shortly before bitcoin hit a record high near $126,000 in early October, before sliding below $90,000 in November. That 30% correction has weighed on sentiment toward bitcoin-linked exchange-traded funds.
On Nov. 18, IBIT recorded its biggest single-day outflow since the product launched in January 2024, according to on-chain and fund flow trackers such as Farside Investors. However, by Wednesday it had logged its first net inflow since Nov. 11, hinting that some investors used the pullback to re-enter.
Are other major institutions following Abu Dhabi into IBIT?
The move by Al Warda is part of a broader wave of institutional allocations into spot bitcoin products. Most notably, Harvard’s endowment fund recently disclosed a $443 million position in the same ETF, an allocation equal to about 20% of its reported U.S.-listed public equity holdings.
Moreover, family offices, hedge funds and other sovereign entities have been steadily increasing their presence in regulated bitcoin vehicles. That said, the recent 30% drawdown reminds allocators that volatility remains a core feature of the asset class.
In sum, Al Warda’s enlarged stake in the IBIT ETF, combined with ADIC’s explicit framing of bitcoin as a long-term store of value, underscores how sovereign and academic capital are reshaping demand for listed bitcoin products even amid sharp price swings.
