Two Abu Dhabi-based wealth funds significantly increased their Bitcoin exposure during Q4 2025, despite a 30% price decline. Mubadala Investment Company and Al Warda Investments collectively reported holdings of over $1 billion in BlackRock’s Bitcoin ETF (IBIT) by year-end. While these sovereign entities bought the dip, overall institutional long exposure to the ETF decreased by 10% quarter-on-quarter.
The United Arab Emirates demonstrated notable conviction in Bitcoin during a significant market drawdown. Two government-linked Abu Dhabi funds held over $1 billion in BlackRock’s Bitcoin ETF by the end of 2025, according to quarterly 13F filings.
Mubadala Investment Company reported owning shares worth over $630 million, a 46% increase from the previous quarter. Bitwise senior investment strategist Juan Leon stated, “Mubadala sovereign wealth fund doubled down on BTC during the Q4 drawdown.”
Al Warda Investments, a government investment division, held shares worth over $408 million. This accumulation occurred as Bitcoin’s price fell from $126,000 to $87,000, a 30% drop over the same period.
Institutional ownership of IBIT remained largely unchanged quarter-on-quarter, decreasing by only 0.41%. However, the total number of institutional shares held as long positions dropped by 10%.
The average portfolio allocation to IBIT among reporting firms fell by 28%. This suggests institutions scaled back exposure, potentially due to rebalancing or profit-taking.
The funds’ actions were described by Bitcoin historian Peter Rizzo as evidence ‘nations are buying the dip.’ Meanwhile, assets under management for BlackRock’s Bitcoin ETF declined from a record $95 billion to $57 billion.
The broader U.S. spot Bitcoin ETF market also contracted, with combined AUM dropping from $162 billion to $100 billion. It is important to note that 13F filings only capture long exposure and not other strategies like short positions.
