BlackRock’s spot Bitcoin ETF has fallen nearly 23% since the end of the third quarter, but that hasn’t stopped major institutions from increasing their exposure.
Abu Dhabi Investment Council Triples Bitcoin ETF Stake in Q3: Report
The Abu Dhabi Investment Council (ADIC) almost tripled its Bitcoin holdings in the third quarter through BlackRock’s spot Bitcoin ETF (IBIT), according to a new report — a move many see as a sign that institutional demand for crypto continues to grow in the UAE.
ADIC, part of Mubadala Investment Company, told Bloomberg it views Bitcoin as the digital equivalent of gold.
Buying Into Volatility
The increased stake came during a turbulent stretch for Bitcoin. The quarter ended just before BTC hit an all-time high of $125,100 on Oct. 5, followed by a sharp drop back below $90,000 this week.
According to Bloomberg, ADIC boosted its IBIT position from 2.4 million shares at the start of Q3 to nearly 8 million shares by Sept. 30, worth about $520 million. IBIT ended the quarter at $65 per share and climbed to $71 a day after Bitcoin’s record high.
But with Bitcoin’s pullback below $100,000, IBIT has followed suit. The ETF closed Wednesday at $50.71, down almost 23% since Q3 ended and nearly 19% over the past month.
Institutional Interest Still Rising
Despite the price slide, analysts say ADIC’s move signals growing institutional confidence.
Zayed Aleem, treasury manager at M2, said it was “fantastic to see such institutional conviction,” calling the move further proof that the UAE is solidifying its role as a global digital-asset hub. Crypto commentator MartyParty agreed, saying the position reflects a strategic bet on Bitcoin as a store of value.
The report comes one day after IBIT logged its largest single-day outflow since launching in January 2024, with $523.2 million leaving the fund as Bitcoin briefly dipped to $88,000. BTC is currently trading near $92,089.
IBIT Faces Pressure, but Long-Term Flows Remain Strong
ETF analyst Eric Balchunas described the recent performance as an “ugly stretch,” noting that Bitcoin ETFs have seen $3.3 billion in outflows over the past month — about 3.5% of total assets. Still, IBIT’s year-to-date inflows remain exceptionally strong at $25 billion.
Market analysts remain divided on Bitcoin’s outlook. Some, like analyst VICTOR, say the current dip may be a key accumulation zone, calling it “the close your eyes and bid type of range.”
Featured image from: cointelegraph.com