Abu Dhabi Investment Council Triples Bitcoin ETF Stake to $518M Before Market Crash

Core Insights - The Abu Dhabi Investment Council (ADIC) has significantly increased its investment in Bitcoin by tripling its position in BlackRock's iShares Bitcoin Trust ETF, raising its stake from 2.4 million shares to 8 million shares, valued at approximately $518 million as of September 30, 2025 [1][2][3] Investment Strategy - ADIC views Bitcoin as a long-term store of value, similar to gold, and aims to retain both assets as part of its investment strategy [3] - The initial investment in the iShares Bitcoin Trust ETF was made in February 2025, amounting to $436.9 million [3] Market Context - The increase in ADIC's Bitcoin position occurred just before a significant downturn in the cryptocurrency market, with Bitcoin's value dropping around 20% since the end of September [2][4] - Despite a 6.2% gain in the ETF during the third quarter, substantial outflows and declining digital asset prices have negated these gains, with $3.1 billion exiting US Bitcoin ETFs in November alone [2][4] Institutional Interest - ADIC's investment reflects a broader trend of institutional interest in US-listed spot Bitcoin ETFs, with other investors like Harvard Management Co. also increasing their exposure during the same period [4][5] - Abu Dhabi is emerging as a crypto finance hub, with its sovereign wealth funds managing over $1.7 trillion and engaging in various digital asset investments [5] Market Dynamics - The decision to increase the IBIT stake before the market downturn has raised questions within the investment community regarding the timing and strategy of such investments [6]