ADIC Boosts Exposure Despite Volatile Quarter for Bitcoin and IBIT
The Abu Dhabi Investment Council (ADIC) significantly expanded its exposure to Bitcoin during the third quarter, nearly tripling its holdings in BlackRock’s spot Bitcoin ETF, according to new market disclosures. The move is being interpreted as a strong signal that institutional appetite for digital assets continues to grow across the United Arab Emirates.
ADIC, an investment arm of Mubadala Investment Company, described Bitcoin as the “digital equivalent of gold”, underscoring its long-term view despite recent market turbulence.
The fund’s increased allocation came during one of Bitcoin’s most volatile stretches of the year, highlighting confidence in BTC’s long-term store-of-value role.
ADIC Bought Nearly 8 Million IBIT Shares Before Bitcoin’s October Peak
Bloomberg reported that ADIC boosted its holdings in BlackRock’s IBIT ETF from 2.4 million shares at the start of Q3 to nearly 8 million by September 30, a position valued at around $520 million. IBIT ended the quarter at $65 per share, rising briefly to $71 on Oct. 6 — the day after Bitcoin surged to a record high of $125,100.
Over the past month, IBIT has struggled alongside Bitcoin’s decline. The ETF closed Wednesday at $50.71, marking a drop of nearly 23% since the end of Q3.
Even so, analysts viewed ADIC’s move as a broader sign of rising institutional conviction in the region.
Zayed Aleem, treasury manager at crypto investment platform M2, wrote that the allocation demonstrates “institutional conviction and another strong signal that the UAE is securing its place as a global hub for digital assets.”
Crypto strategist MartyParty added that ADIC’s position reflects “a strategic bet on BTC’s role as a store of value.”
ETF Outflows Add Pressure as IBIT Faces “Ugly Stretch”
Just one day before the report surfaced, IBIT recorded its largest single-day outflow since launching in January 2024 — totaling $523.2 million, according to Farside. Bitcoin briefly sank to $88,000 during the same period.
ETF analyst Eric Balchunas described IBIT’s recent performance as “an ugly stretch,” noting that more than $3.3 billion has exited Bitcoin ETFs over the past month.
Despite short-term pressure, IBIT still holds a massive +$25 billion in year-to-date inflows.
Analysts remain divided on Bitcoin’s near-term direction, with some calling the current range a “close your eyes and bid” opportunity.
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