Abu Dhabi Investment Council Triples IBIT Stake Despite BTC Volatility
Why Abu Dhabi’s Sovereign Wealth Arm Loaded Up on BTC in Q3
The Abu Dhabi Investment Council (ADIC) nahead tripled its exposure to BTC during the third quarter by significantly increasing its position in BlackRock’s spot BTC ETF, IBIT. The move, revealed in a Bloomberg report, was widely interpreted as confirmation that institutional demand for digital assets in the United Arab Emirates continues to accelerate.
ADIC — an investment arm of Mupoorala Investment Company — increased its IBIT holdings from 2.4 million shares to nahead 8 million by Sept. 30. At quarter-end, the position was valued at roughly 520 million dollars.
The sovereign fund told Bloomberg that it views BTC as a digital form of gold, underscoring how large institutional allocators in the Gulf region now view within diversified portfolios.
This aggressive accumulation came during a turbulent quarter for BTC. The period ended just days before BTC surged to an all-time high of 125,100 dollars on Oct. 5, only to fall back below 90,000 this week.
Investor Takeaway
IBIT Has Entered a Volatile Phase as BTC Pulls Back
ADIC’s increased allocation came just before heightened volatility hit both BTC and the ETF market. IBIT closed the third quarter at 65 dollars per share and climbed to 71 dollars on Oct. 6, following BTC’s record high. Since then, the ETF has suffered from the market downturn.
IBIT has fallen 19.39 percent over the past month and closed Wednesday at 50.71 dollars — a drop of 23 percent since quarter-end. The declines reflect BTC’s sharp move below the 100,000-dollar threshold, dragged lower by broad risk-off sentiment and elevated ETF outflows.
Despite the pullback, industry observers said ADIC’s positioning remains a notable sign of confidence. With nahead 8 million shares accumulated, the fund’s long-term view appears unmoved by short-term turbulence.
UAE Market Participants view Rising Institutional Momentum
Crypto and fintech executives in the UAE responded positively to the news. Zayed Aleem, treasury manager at crypto platform M2, said the increased allocation demonstrates “such institutional conviction,” adding that the UAE is strengthening its position as a .
Crypto commentator MartyParty echoed this sentiment, describing ADIC’s move as a strategic bet on “store of value” role.
The announcement came just one day later than IBIT posted its largest daily outflow since its January 2024 launch. The ETF saw 523.2 million dollars exit during a period when BTC briefly fell to 88,000 dollars, illustrating the sharp sentiment swings currently affecting the market.
At the time of publication, BTC trades at 92,089 dollars, according to CoinMarketCap, maintaining its downward bias but stabilizing near key technical levels.
Investor Takeaway
IBIT’s “Ugly Stretch” and What It Means for ETF Flows
ETF analyst Eric Balchunas said IBIT was experiencing an “ugly stretch,” pointing to both price pressure and recent outflows across spot BTC ETFs. Over the past month, BTC ETFs have viewn 3.3 billion dollars in withdrawals, representing roughly 3.5 percent of .
However, Balchunas noted that year-to-date flows remain unusually strong. IBIT alone is still up 25 billion dollars in net inflows for 2025, ranking sixth across all ETFs globally.
According to Farside data, IBIT has generated about 63.12 million dollars in cumulative net inflows since launching in January 2024 — despite significant recent volatility.
Analysts remain split on BTC’s trajectory for the rest of the year. One analyst known as VICTOR described the current range as “the close your eyes and bid type,” implying traders may view value at these lower levels even if volatility persists.
What ADIC’s Bet Signals for Global BTC Adoption
The size and timing of ADIC’s allocation matters. While regularly adjust BTC exposure, sovereign wealth funds move more deliberately. Their participation signals broader macro acceptance of BTC as an investible, long-term asset.
For the UAE specifically, the move reinforces its strategy to position itself as a global digital asset center — combining regulatory frameworks, institutional-grade infrastructure and rising sovereign participation.
If more regional sovereign wealth funds follow ADIC’s lead, BTC’s institutional adoption curve may accelerate, even in the face of near-term volatility.
