Bitcoin Price Jumps as Abu Dhabi Reveals Massive $436M ETF Purchase

In a recent update, Abu Dhabi on Friday, revealed a massive $436.9 million stake in BlackRock’s iShares Bitcoin ETF (IBIT) as of December 31, 2024. The investment was made through Mubadala Investments, according to a 13F filing with the SEC. The company makes investments on behalf of Abu Dhabi’s government, which serves as the capital city of the United Arab Emirates.

This marks one of the first known instances of a sovereign wealth fund investing in Bitcoin, and it raises a big question: Are more government-backed funds about to follow?

With BlackRock already securing a commercial license in Abu Dhabi and institutional interest in crypto growing fast, this could be just the beginning.

Bitcoin Reacts to the News

Bitcoin’s price jumped nearly 1% to $97,700 following the announcement. This investment is one of the first known allocations to crypto assets by a major sovereign wealth fund, marking a significant moment for institutional Bitcoin adoption.

The move comes shortly after BlackRock secured a commercial license to operate in Abu Dhabi last November. With nearly $56 billion in assets, BlackRock manages the largest spot Bitcoin ETF, and Abu Dhabi’s backing highlights the growing confidence in Bitcoin among global financial institutions.

Abu Dhabi’s Expanding Crypto Investments

While this is one of Abu Dhabi’s biggest crypto investments, it is not the city’s first step into digital assets. In 2023, Abu Dhabi invested in Bitcoin mining, with Marathon Digital and Zero Two announcing plans for a large-scale mining complex in the region.

Former Binance CEO changpeng zhao changpeng zhao Changpeng Zhao, populalrly known as CZ, is a Chinese-Canadian businessman. He founded Binance, the biggest cryptocurrency exchange in the world based on trading volume. CZ came across Bitcoin (BTC) in 2013 from a friend. Full Name Changpeng Zhao Birth  1977 in Lianyungang, Jiangsu, China Nationality Chinese-Canadian, UAE Education BSc. from McGill University Marital Status Married to Yang Weiqing Famous For Binance, Advocate for decentralized finance, blockchain tech. Net Worth $59.4B (refer for realtime) Before starting Binance in 2017, he was the Head of Development at Blockchain.info and the Chief Technology Officer (CTO) at OKCoin. Under CZ, Binance launched an ICO (Initial Coin Offering) that raised $15 million and rapidly became the largest exchange within months. To improve trading options, the firm introduced Binance Smart Chain (BSC), Binance Labs, Binance Academy, Binance Launchpad, and other blockchain-based solutions. CZ has influenced the global adoption of crypto by offering regulatory compliance, DeFi solutions, and infrastructure for digital assets. CZ’s Career Timeline Tokyo Stock Exchange (2001–2003) – Developed trading systems for financial institutions. Bloomberg Tradebook (2003–2005) – Worked as a software developer for high-frequency trading systems. Fusion Systems (2005–2013) – Co-founded this financial technology firm specializing in ultra-low-latency trading solutions. Blockchain.info (2013–2014) – Served as Head of Development, working with early Bitcoin adopters like Roger Ver and Ben Reeves. OKCoin (2014–2015) – Worked as Chief Technology Officer (CTO) at one of the largest fiat-to-crypto exchanges at the time. Binance (2017–2023) – Founded Binance and led it to become the world's largest cryptocurrency exchange before stepping down as CEO in 2023. Awards and Recognizations List of achievements Year Bloomberg 50 – Most Influential People in Finance 2021 Forbes Crypto Rich List – Billionaire Status 2022 Top 10 Most Influential People in Crypto (CoinDesk) 2022 Binance – World’s Largest Crypto Exchange by Volume 2018-23 There were regulatory issues in some countries about crypto. However, CZ continued to support decentralization, financial freedom, and innovation in the cryptocurrency industry. After reaching an agreement with U.S. regulators over compliance violations, in 2023, he resigned as CEO of Binance. Useful Links X (formerly Twiter) https://twitter.com/cz_binance? Instagram CZ_Binance (@changpengzhao)  LinkedIn Changpeng Zhao - Binance | LinkedIn EntrepreneurInvestorChief Executive Officer has also suggested that other Abu Dhabi-based sovereign wealth funds could follow suit, indicating a broader interest in cryptocurrency investments within the region.

US Could Follow Abu Dhabi’s Lead, Says Pompliano

Bitcoin advocate Anthony Pompliano believes Abu Dhabi’s investment could push the United States toward a similar strategy.

“Abu Dhabi’s sovereign wealth fund just revealed they are buying hundreds of millions of dollars in bitcoin and people still think the United States won’t buy bitcoin. The Strategic Bitcoin Reserve is happening,” Anthony Pompliano noted on social media.  

He also pointed out that one of the world’s largest sovereign wealth funds is now investing in Bitcoin, emphasizing Bitcoin’s limited supply of 21 million coins. “I wonder what happens now that nation-states are here,” he added.

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Institutional Interest in Bitcoin ETFs Grows

Abu Dhabi is not the only major institutional player increasing its Bitcoin exposure. The State of Wisconsin Investment Board (SWIB) has significantly raised its stake in BlackRock’s iShares Bitcoin Trust (IBIT).

According to an SEC filing, SWIB added over 3 million shares, bringing its total to 6 million shares worth more than $321 million as of December 31, 2024. Wisconsin’s investments also go beyond IBIT, with holdings in Coinbase, Marathon Digital Holdings, Robinhood, and Block Inc.

Abu Dhabi’s move is part of a broader trend of increasing cryptocurrency adoption in the Middle East. Governments and financial institutions in the region are showing greater interest in blockchain and digital assets.

With sovereign wealth funds entering the Bitcoin market, the question now is which country will be next to follow.

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