The Abu Dhabi Investment Council significantly increased its stake in a bitcoin exchange-traded fund just before a sharp downturn in cryptocurrency markets. This move tripled its holdings in BlackRock's iShares Bitcoin Trust ETF during the third quarter. The position was valued at about $518 million as of September 30.
The Abu Dhabi Investment Council (ADIC), an independently run unit of the sovereign wealth fund Mubadala Investment Co., more than tripled its position in BlackRock Inc.'s iShares Bitcoin Trust ETF in the third quarter. According to a regulatory filing disclosed by a subsidiary of ADIC, the fund held almost 8 million shares as of September 30, up from 2.4 million shares three months earlier. At that time, the position was worth approximately $518 million.
This expansion occurred amid a bull market in cryptocurrencies, which soon transitioned into a brutal selloff. The timing highlights the risks associated with volatile assets like bitcoin, as the fund ramped up its exposure right before market conditions deteriorated.
ADIC's strategy reflects broader interest from institutional investors in digital assets through regulated vehicles such as ETFs. However, the subsequent crypto crash underscores the challenges of timing investments in this space, potentially impacting the fund's portfolio value.