Abu Dhabi Wealth Funds Boost Bitcoin ETF Holdings Amid Market Drop
By John Nada·Feb 17, 2026·4 min read
Abu Dhabi wealth funds increased Bitcoin ETF holdings to over $1 billion despite market downturns, signaling long-term investment strategies in digital assets.
Abu Dhabi’s major investment firms have significantly increased their stake in Bitcoin, with holdings in BlackRock's iShares Bitcoin ETF (IBIT) surpassing $1 billion by the end of 2025. This increase came despite a notable downturn in the Bitcoin market, which saw a 23% decline during the fourth quarter of the year.
Mubadala Investment Company, a sovereign wealth fund backed by the Abu Dhabi government, added nearly four million shares of IBIT from October to December 2025, raising its total to 12.7 million shares. Meanwhile, Al Warda Investments expanded its holdings from 7.96 million shares to 8.2 million shares during the same period. This growth in their combined investments reflects a strong commitment to Bitcoin through regulated channels, even amidst market volatility.
The recent disclosures via 13F filings with the U.S. Securities and Exchange Commission highlight an escalating interest in spot Bitcoin ETFs among institutional investors. BlackRock’s IBIT, which debuted in early 2024, has emerged as the leading vehicle for regulated exposure to Bitcoin in the U.S. This trend illustrates a shift where long-term investors may view market downturns as opportunities to acquire positions in more liquid, regulated products.
Despite challenges in early 2026—such as low volatility and reduced retail participation—the actions of these Abu Dhabi firms indicate a belief in the long-term value of Bitcoin as part of their investment strategy. The decision to increase their stakes during a downturn can be seen as a vote of confidence in Bitcoin's resilience and potential for recovery.
Robert Mitchnick, BlackRock's head of digital assets, pointed out that the assumption hedge funds are driving significant market volatility does not align with their observations. Instead, he noted that holders of IBIT are primarily long-term investors, suggesting a more stable market dynamic than some analysts perceive. This insight could reshape how market participants view the role of institutional investment in cryptocurrency, particularly during turbulent times.
The implications of these holdings are profound. As institutional players like Mubadala and Al Warda continue to invest in Bitcoin ETFs, it signals a growing acceptance of Bitcoin within traditional financial systems. This shift could pave the way for further institutional adoption, potentially attracting more capital into the sector and enhancing Bitcoin's legitimacy as an asset class. The current market conditions, paired with the strategic moves of these wealth funds, underscore a critical evolution in how digital assets are integrated into global finance.
With Bitcoin's market value fluctuating and down again in 2026, the current worth of the Abu Dhabi funds' holdings has reportedly dropped to slightly over $800 million. This decline, however, does not necessarily deter these firms from their investment strategy. Instead, it may present a tactical opportunity for them to solidify their positions at a lower cost, further demonstrating their long-term commitment to the asset.
Mubadala’s history of investments in IBIT began in late 2024, showing a calculated approach to accumulating Bitcoin exposure. Their decision to buy into BlackRock’s ETF during a market downturn implies a strategic vision that evaluates long-term potential over immediate fluctuations. This is particularly relevant as the cryptocurrency landscape is often characterized by rapid price shifts and market sentiment swings.
The involvement of Al Warda Investments, which manages diversified global assets on behalf of government-related entities, adds another layer of institutional credibility to the Bitcoin ETF space. Their incremental increase in holdings reflects a cautious yet optimistic outlook on Bitcoin's future. The slight uptick in shares from 7.96 million to 8.2 million further indicates a belief in the asset's potential, even when faced with short-term volatility.
Moreover, the broader context of institutional investment in cryptocurrency is evolving. As more firms recognize the regulatory frameworks surrounding spot Bitcoin ETFs, there is likely to be increased participation from large-scale investors. The uptake in regulated products like BlackRock's IBIT means that institutional investors are becoming more comfortable with the risks associated with digital assets, suggesting a potential maturing of the market.
The strategic moves of these Abu Dhabi wealth funds will be closely watched as indicators of institutional sentiment towards Bitcoin and the broader cryptocurrency market. Their willingness to invest significantly during a downturn not only reflects confidence in Bitcoin's value proposition but also suggests that they anticipate a recovery in the market. As such, the actions of Mubadala and Al Warda may serve as a bellwether for future institutional investments in the rapidly evolving landscape of digital finance.