Abu Dhabi's sovereign wealth apparatus crossed a landmark threshold by the end of 2025, with combined holdings in BlackRock's iShares Bitcoin Trust ETF (IBIT) surpassing $1 billion for the first time, according to the latest 13F filings reviewed by The Block. As of February 17, 2026, the disclosure confirms what the crypto market had been watching for months: the United Arab Emirates is building one of the largest known sovereign-level Bitcoin positions on Earth, and it is doing so through the most mainstream vehicle available.
Two Entities, One Billion-Dollar Bitcoin Bet
The $1 billion figure comes from the combined positions of two entities operating under the Mubadala Investment Company umbrella, Abu Dhabi's flagship sovereign wealth fund that manages over $1.7 trillion in assets.
Al Warda Investments, managed by the Abu Dhabi Investment Council (ADIC), reported holding 8,218,712 shares of IBIT as of December 31, 2025, according to its Q4 13F filing. That represents an increase from 7,963,393 shares at the end of Q3, a modest but deliberate addition of roughly 255,000 shares during the fourth quarter. Al Warda had already tripled its position earlier in 2025, jumping from 2.4 million shares to nearly 8 million in a single quarter.
Mubadala Investment Company itself held 8,726,972 shares as of its most recent disclosure (March 31, 2025), valued at approximately $408.5 million at Q1 prices. Mubadala has been a consistent accumulator since first appearing in IBIT's shareholder registry, adding 491,439 shares during Q1 alone.
Together, the two entities held approximately 16.9 million IBIT shares by year-end, a combined position that, at Q4 Bitcoin prices near $93,000, valued the holdings well north of $1 billion.
Why a Sovereign Wealth Fund Chose a Bitcoin ETF Over Direct Custody
The decision to channel over a billion dollars through BlackRock's ETF rather than buying Bitcoin directly speaks volumes about institutional risk management. IBIT offers SEC-registered custody through Coinbase Prime, daily NAV transparency, and integration with existing brokerage infrastructure. For a sovereign wealth fund answering to government oversight boards, these features are not optional luxuries.
An ADIC spokesperson explained the rationale to Bloomberg: "We view Bitcoin as a store of value similar to gold, and as the world continues to move toward a more digital future, we see Bitcoin playing an increasingly important role alongside gold."
That framing matters. Abu Dhabi is not treating Bitcoin as a speculative trade. The sovereign fund is classifying it alongside gold in its long-term strategic allocation, the kind of language that signals a multi-year hold rather than a tactical position.
BlackRock's IBIT itself has become a gravitational center for institutional capital. The fund manages over $70 billion in assets and recorded $25 billion in inflows during 2025 alone, making it one of the most successful ETF launches in history. Abu Dhabi's billion-dollar stake now represents one of the largest single-entity positions in the fund.
The UAE's Broader Digital Asset Strategy
Abu Dhabi's Bitcoin accumulation does not exist in isolation. The emirate has been methodically building crypto infrastructure across multiple fronts.
The Abu Dhabi Global Market (ADGM) free zone has licensed major exchanges including Binance and OKX to operate within its jurisdiction. Dubai's Virtual Assets Regulatory Authority (VARA) has granted full licenses to firms like Crypto.com and Animoca Brands. The country's central bank has been exploring a digital dirham CBDC pilot.
When viewed together, the pattern is clear: the UAE is pursuing a dual strategy of accumulating Bitcoin at the sovereign level while simultaneously building the regulatory and institutional rails to support a domestic crypto economy. The billion-dollar IBIT position is the financial cornerstone, while the licensing framework is the operational one.
For users holding crypto cards in the UAE, the sovereign fund's commitment provides a powerful signal. Government-level Bitcoin adoption tends to trickle down into more permissive consumer crypto policies, and the UAE already ranks among the most crypto-friendly jurisdictions globally.
What This Means for Bitcoin's Institutional Demand Curve
The Abu Dhabi disclosure arrives during a period of mixed signals for Bitcoin ETF flows. U.S.-focused funds have experienced four consecutive weeks of outflows totaling $3.7 billion, while European and Middle Eastern allocators have moved in the opposite direction.
This divergence underscores an important structural shift. Retail-driven U.S. flows respond to price momentum and sentiment cycles. Sovereign wealth allocations operate on entirely different timelines, driven by asset-liability matching, diversification mandates, and multi-decade investment horizons.
When a $1.7 trillion fund complex quietly builds a billion-dollar Bitcoin position through a regulated ETF, it validates the asset class in a way that no retail inflow spike can match. Other sovereign funds, from Norway's Government Pension Fund to Singapore's GIC, will inevitably benchmark their own crypto exposure against Abu Dhabi's precedent.
The move also reinforces BlackRock's growing dominance across the digital asset landscape, from its BUIDL tokenized Treasury fund to its staked ETH ETF filing that could charge up to 18% of staking rewards as fees.
The Self-Custody Counterargument
While Abu Dhabi's ETF approach makes institutional sense, it highlights a tension that matters for individual crypto users. Holding Bitcoin through an ETF means trusting BlackRock, Coinbase, and the SEC's regulatory framework. There is no private key. There is no self-sovereignty. And there is a management fee (0.25% annually for IBIT) that compounds over time.
For individual holders who want to spend their Bitcoin without intermediary risk, self-custody crypto cards offer the opposite philosophy: direct wallet control with the ability to pay at point of sale. The sovereign fund's choice validates Bitcoin's value proposition. The delivery mechanism remains a matter of philosophy and risk tolerance.
FAQ
How much Bitcoin does Abu Dhabi hold through ETFs? Abu Dhabi's Mubadala and ADIC entities combined held approximately 16.9 million shares of BlackRock's IBIT by the end of 2025, valued at over $1 billion. This makes the UAE one of the largest known sovereign Bitcoin allocators globally.
Why did Abu Dhabi use an ETF instead of buying Bitcoin directly? Sovereign wealth funds prioritize regulatory compliance, custody security, and integration with existing financial infrastructure. IBIT offers SEC registration, Coinbase Prime custody, and daily NAV reporting, features that satisfy institutional governance requirements.
Does Abu Dhabi's investment affect Bitcoin's price? Sovereign wealth fund accumulation adds long-term structural demand that is less sensitive to short-term price swings than retail flows. The $1 billion position signals a multi-year strategic commitment rather than a tactical trade, which supports price stability over time.
Which other sovereign funds hold Bitcoin ETFs? Several sovereign and quasi-sovereign entities have disclosed Bitcoin ETF positions, including Wisconsin's State Investment Board, South Korea's National Pension Service, and various central banks exploring digital asset allocations. Abu Dhabi's position is among the largest publicly disclosed.
Overview
Abu Dhabi's sovereign wealth funds crossed the $1 billion threshold in BlackRock's IBIT Bitcoin ETF by the end of 2025, with Mubadala and ADIC together holding nearly 17 million shares. ADIC has explicitly compared Bitcoin to gold as a long-term store of value. The disclosure arrives as the UAE continues building comprehensive crypto regulatory infrastructure and licensing major exchanges within its borders. For the broader market, the position validates Bitcoin's institutional investment thesis at the sovereign level and sets a benchmark for other national wealth funds considering digital asset exposure.
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