Mubadala Investment Company disclosed a sharp increase in its position in BlackRock’s spot Bitcoin ETF, reporting 12.7 million shares of the iShares Bitcoin Trust valued near $630.6 million by December. 31. The figure reflects a 46% rise from 8.7 million shares reported at the end of the third quarter.
The sovereign fund manages more than $330 billion across global portfolios that include technology, infrastructure, healthcare, private equity, and public markets. Its mandate focuses on sustainable returns and economic diversification for Abu Dhabi.
Another government-linked investor, Al Warda Investments, also increased its exposure. The firm held 8.22 million IBIT shares in the fourth quarter, up from 7.96 million in the previous quarter. The allocation stands out because the firm historically favored private investments over public market crypto exposure.
Together, Abu Dhabi investment vehicles controlled more than 20 million IBIT shares at year-end, with a combined value above $1.1 billion.
Institutional demand concentrates around BlackRock’s bitcoin fund
Major financial firms expanded positions in IBIT during the same period. Jane Street added more than 7.1 million shares in the fourth quarter, bringing its holdings to over 20.3 million shares valued around $790 million.
Goldman Sachs disclosed roughly $2.36 billion in total crypto exposure, including about $1.1 billion in IBIT. The filing also listed positions tied to Fidelity’s bitcoin fund, bitcoin-related companies, options linked to IBIT, and holdings connected to Ethereum, XRP, and Solana.
These disclosures came through quarterly 13F filings with the U.S. Securities and Exchange Commission, which require institutional managers with at least $100 million in assets to report equity holdings.
Price pressure reshapes portfolio values
Despite the accumulation, IBIT’s market value declined as bitcoin prices softened. Shares of the ETF fell about 22.5% year-to-date, which reduced the combined Abu Dhabi exposure to roughly $803 million based on more recent pricing.
Bitcoin traded near $67,700 in the latest market update, about 46% below its October peak. ETF flows also showed volatility. Spot bitcoin ETFs shed more than $21 billion in assets earlier this year, according to CoinGlass, before posting a small positive inflow at the end of last week.
Diverging strategies among public investors
Other institutions adjusted crypto allocations in the same quarter. Harvard University reduced its IBIT position by about 21% to 5.35 million shares valued near $265.8 million. The university opened a new $86.8 million position in BlackRock’s iShares Ethereum Trust.
State-level participation also appeared. Texas purchased IBIT shares valued at about $5 million as part of a strategic reserve initiative. Officials previously explored legislation to establish a bitcoin reserve without taxpayer funding. The state continues work on plans for self-custody.
Early allocations and shifting sentiment shape the cycle
Mubadala first added IBIT exposure in the fourth quarter of 2024 with at least $436 million allocated at the time. The recent increase reflects continuity in that strategy despite price swings and ETF outflows.
Institutional portfolios now show varied approaches. Some funds increased exposure. Others trimmed bitcoin positions and added different crypto-linked products. The contrast reveals how managers balance volatility with long-term allocations.
BlackRock’s IBIT remains the largest spot bitcoin ETF, with assets near $52 billion. The fund’s scale makes it a primary vehicle for institutional exposure to the digital asset through public markets.
The accumulation by Abu Dhabi entities places sovereign capital among the largest holders of bitcoin-linked ETF shares. The moves also highlight a broader shift in how public funds and global asset managers approach crypto exposure through regulated investment products.
Gunel Ismayilova
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