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    Abu Dhabi Funds Now Hold Over $1B in BlackRock’s Bitcoin ETF

    Story Highlights
    • Abu Dhabi funds and corporates increased Bitcoin and Ethereum holdings during the 2025–26 crash, signaling strong long-term institutional confidence.

    • Despite a 23% BTC drop, sovereign funds and firms kept buying ETFs and crypto, hinting at strategic accumulation, not panic selling.

    Two Abu Dhabi-based investment firms, Mubadala Investment Company and Al Warda Investments, increased their Bitcoin exposure in the fourth quarter of 2025, even as the crypto market declined sharply.

    Both firms added shares of iShares Bitcoin Trust, a spot Bitcoin ETF managed by BlackRock. The move shows continued interest in regulated crypto investment products despite market volatility.

    Mubadala raised its holdings to 12.7 million IBIT shares after buying nearly four million additional shares in Q4. Al Warda increased its position to 8.2 million shares. By the end of 2025, their combined Bitcoin ETF investment was worth more than $1 billion.

    Buying During the Bitcoin Price Drop

    The timing is notable. The Bitcoin price fell about 23% in Q4 2025. Instead of waiting for recovery, both firms added exposure during the correction.

    The weakness continued into early 2026, with Bitcoin falling another 23% year-to-date. As a result, the combined value of their holdings has dropped to just above $800 million, assuming no further purchases.

    Still, the strategy reflects long-term positioning rather than short-term trading. Large institutions are increasingly using spot Bitcoin ETFs to gain crypto market exposure. These exchange-traded funds offer:

    • Regulated investment structure
    • Easier portfolio management
    • High liquidity
    • Reduced custody risks

    For sovereign wealth funds and asset managers, Bitcoin ETFs provide a simpler way to invest in digital assets without directly holding crypto.

    Corporate Treasury Bitcoin and Ethereum Buying

    Institutional accumulation is not limited to government-backed funds. Corporate treasury strategies also show continued crypto buying despite unrealized losses.

    Strategy purchased 2,486 BTC at an average price of $67,710, investing $168 million. The company now holds 717,131 BTC valued at roughly $48.8 billion. With an average Bitcoin purchase price of $76,027, it is currently sitting on about $5.8 billion in unrealized losses.

    Meanwhile, BitMine Immersion Technologies bought 45,759 ETH at an average price of $2,001, investing $91.6 million. The firm now holds 4.37 million ETH worth around $8.67 billion. Its average acquisition cost of $3,801 leaves it with nearly $8 billion in paper losses.

    Despite the decline in the Bitcoin and Ethereum price, both companies continue to expand their digital asset holdings.

    Bitcoin Market Outlook: Bearish Phase or Long-Term Confidence?

    The crypto market trend in early 2026 looks weak. Bitcoin price action remains under pressure, retail investor activity is subdued, and global economic uncertainty continues to weigh on risk assets.

    However, institutional investors appear to be taking a different approach. Sovereign wealth funds, corporate treasuries, and asset managers are increasing exposure through regulated crypto investment vehicles like spot Bitcoin ETFs.

    While short-term price momentum suggests a correction phase, capital inflows from large institutions point to growing long-term confidence in Bitcoin and Ethereum as strategic assets.

    The key question now is whether this is simply a prolonged crypto market downturn — or quiet accumulation before the next major cycle in the digital asset market.

    Never Miss a Beat in the Crypto World!

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    FAQs

    Why are investment firms buying Bitcoin ETFs during a price drop?

    Institutions like Mubadala often use market corrections to build long-term positions, viewing the price dip as a buying opportunity rather than a signal to sell.

    Why are companies continuing to buy crypto despite market losses?

    Corporate treasuries and sovereign wealth funds are likely focused on Bitcoin and Ethereum’s long-term strategic value rather than reacting to short-term price volatility.

    Is the current crypto market downturn a sign of a bear market?

    While price action is weak, the continued buying from large institutions suggests this could be a phase of accumulation rather than the start of a prolonged bear market.

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