The National Bank of Bahrain (NBB) has introduced its first Bitcoin investment fund, aimed at institutional investors across the Gulf Cooperation Council (GCC), which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. This new fund offers investors exposure to Bitcoin gains while providing 100% downside protection.
Developed in collaboration with ARP Digital, a digital asset firm, the investment vehicle is designed to provide controlled exposure to Bitcoin. Investors can benefit from Bitcoin gains, though returns are capped at a predefined threshold. The fund also ensures complete protection against potential losses, offering a secure option for institutions venturing into the digital asset space.
“This structured investment opens new doors for investors seeking a calculated approach to digital assets,” said Abdullah Kanoo, co-founder and co-CEO of ARP Digital. He emphasized the security of the product, citing ARP Digital’s expertise in digital assets and NBB’s extensive reach within the financial sector.
Bahrain is emerging as a hub for digital asset businesses, with its innovation-friendly regulatory framework attracting key players in the crypto industry. This initiative complements other developments in the region, such as the Central Bank of Bahrain granting licenses to crypto firms like Binance, BitOasis, and Crypto.com.
In the broader Middle East, cryptocurrency adoption continues to rise, with institutional investors playing a major role. According to a Chainalysis report, the Middle East and North Africa (MENA) region accounted for 7.5% of global cryptocurrency transaction volume between July 2023 and June 2024, totaling $338.7 billion. Centralized exchanges dominate on-chain traffic, though interest in decentralized platforms is also growing, particularly in the UAE and Saudi Arabia.
This fund is expected to be a key part of Bahrain’s strategy to strengthen its position as a leader in the crypto and fintech sectors across the region.
Featured image from: cointelegraph.com