A sovereign wealth fund in Abu Dhabi, Mubadala Investment Company, announced last week that it had purchased BlackRock’s Bitcoin exchange-traded funds (ETFs) worth $461 million. Mubadala, which manages over $280 billion, has previously shown interest in this asset class, including investments in Bitcoin mining in 2023. This included a partnership with Marathon Digital Holdings and Zero Two to establish a large-scale Bitcoin mining facility in Abu Dhabi.

According to a Bloomberg analyst, Mubadala Investment Company is now the 7th largest holder of the iShares BTC ETF by Blackrock.

The Middle East is becoming a major player in cryptocurrency and blockchain adoption, with numerous initiatives showcasing its commitment to digital assets. Key examples include:

• Regulatory Leadership: Abu Dhabi Global Market (ADGM) pioneered crypto-friendly regulations, while Dubai’s Virtual Assets Regulatory Authority (VARA) has set a global benchmark for crypto oversight.
• Dedicated Crypto Zones: Ras Al Khaimah’s RAK DAO was launched as a free zone exclusively for Web3 and digital asset companies, simplifying the process of establishing blockchain businesses.
• Institutional Investments: DAMAC Group signed a $1 billion tokenization deal with MANTRA to digitize Middle Eastern real estate and other assets.
• Startup Growth: Hub71 and Further Ventures are accelerating blockchain innovation in Abu Dhabi, backed by $2 billion in funding for Web3 startups.
• Financial Market Expansion: Zodia Markets, a Standard Chartered-backed crypto platform, received approval to operate a virtual asset brokerage in Abu Dhabi.
• Institutional Crypto Trading: Hedge fund Brevan Howard moved a significant portion of its crypto trading operations to the UAE, citing its favorable regulatory environment.

Paul Tudor Jones Doubles Bitcoin Purchases

To further emphasize the increased interest in Bitcoin, an investment fund of renowned American investor Paul Tudor Jones has more than doubled its holdings in Bitcoin ETFs, now owning approximately $427 million worth as of the end of 2024. This marks the fund’s largest single investment in either individual securities or ETFs.

Paul Tudor Jones' increased interest in Bitcoin aligns with his statement late last year:

"I think all roads lead to inflation… I'm long gold and Bitcoin."

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Bank of Montreal Also Invests in Bitcoin ETFs

Bank of Montreal (BMO), the third-largest bank in Canada, has also announced an investment in Bitcoin. According to a recent report on Bitcoin ETF ownership as of the end of last year, BMO has invested approximately $150 million in such ETFs.

The Bank of Montreal has remained silent on their investments into BTC ETF´s and it was only disclosed once the mandatory SEC regulatory filings were released to the public.

According to the recent SEC filings, it is confirmed that the bank currently holds positions within four different Bitcoin ETF´s.

1. Fidelity’s FBTC (Fidelity BTC ETF)
2. Franklin Templeton’s EZBC (Franklin Templeton BTC ETF)
3. BlackRock’s IBIT (BlackRock BTC ETF)
4. Grayscale’s GBTC (Grayscale BTC Trust)

The growing adoption of Bitcoin among sovereign wealth funds, hedge funds, and major banks—exemplified by Abu Dhabi’s Mubadala Investment Company, Paul Tudor Jones’ fund, and Bank of Montreal—not only highlights increasing institutional confidence but also signals a broader shift in global financial markets toward digital assets.

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