Synopsis: The Abu Dhabi Investment Council tripled its stake in BlackRock’s iShares Bitcoin Trust in Q3 2025, increasing to nearly 8 million shares valued at $518 million, affirming long-term confidence in Bitcoin as “digital gold” despite a subsequent market downturn.
The Abu Dhabi Investment Council (ADIC) significantly increased its exposure to Bitcoin in the third quarter of 2025, nearly tripling its stake in BlackRock’s iShares Bitcoin Trust (IBIT). The move pushed ADIC’s holding from 2.4 million shares at the start of Q3 to about 8 million by September 30, valued at roughly $518 million as the quarter ended. This bold allocation came just before a sharp downturn in the cryptocurrency market flattened much of Bitcoin’s 2025 gains.
Notably, ADIC part of Mubadala Investment Company described Bitcoin as “digital gold,” reflecting its strategy to use digital assets as a hedge against inflation and global uncertainty. Personally, seeing such conviction from a major sovereign wealth fund adds weight to the belief that institutions can weather crypto’s notorious volatility.
Bitcoin’s Wild Ride and IBIT Performance
The timing of ADIC’s increased investment proved dramatic. In October, Bitcoin soared to a new high of $126,000, pulling IBIT’s share price to a peak of $71, only to retreat quickly as the broader market stumbled. By November 19, the ETF traded around $51, down about 23% from the quarter’s close. Meanwhile, Bitcoin itself slid below $90,000 before marginally recovering.
IBIT, launched by BlackRock in January 2024, has become the world’s largest spot Bitcoin ETF and controlled roughly half the U.S. market by mid-2025, thanks to its size and low fees. However, since early October, the ETF has faced heavy outflows, with $1.26 billion leaving the fund in November alone yet its assets under management remain robust above $70 billion.
UAE’s Expanding Crypto Strategy
This move fits neatly into the UAE’s ambitious push to be a global leader in fintech and crypto. Earlier in 2025, other entities linked to Mubadala made notable investments, including a $2 billion Binance stake. The UAE continues to attract crypto infrastructure and blockchain firms, with ADIC’s increased IBIT holding serving as a high-profile endorsement of Bitcoin’s role in modern portfolios.
Some experts saw ADIC’s bet as a reference point for other sovereign investors. Even as retail investors pulled back during recent turmoil, institutions appear more willing to stick through tough periods. Honestly, it’s encouraging for the broader crypto community when major funds double down during volatile stretches.
What the Future May Hold
Despite a rocky patch for prices, ADIC’s approach signals long-term confidence. While the value of its IBIT stake fell to around $400 million by mid-November, the council’s position remains substantial among non-U.S. institutions. Analysts believe such moves by state-backed players could foster market stability going forward.
Opinions remain divided over Bitcoin’s short-term prospects, with some calling the current drawdown a temporary “close your eyes and buy” moment. Still, if the U.S. Federal Reserve loosens policy and regulatory changes remain favorable, fund inflows could recover, potentially boosting ETF assets above $100 billion in 2026.
Written By Fazal Ul Vahab C H
