The council executed the purchases during a period of significant price volatility, including Bitcoin's surge to an all-time high of $125,100 on Oct. 5.
UAE Crypto News
The Abu Dhabi Investment Council (ADIC) nearly tripled its Bitcoin exposure during the third quarter, acquiring approximately $520 million in BlackRock's iShares Bitcoin Trust shares by Sept. 30.
ADIC, the investment arm of Mubala Investment Company, increased its IBIT holdings from 2.4 million shares at the start of Q3 to nearly 8 million shares by quarter's end, signaling substantial institutional conviction in Bitcoin's long-term value proposition.
ADIC characterized Bitcoin as the digital equivalent of gold, framing the accumulation as a strategic allocation to store-of-value assets. The council executed the purchases during a period of significant price volatility, including Bitcoin's surge to an all-time high of $125,100 on Oct. 5. IBIT closed Q3 at $65 per share before climbing to $71 the following day as Bitcoin reached its peak.
The subsequent Bitcoin decline below $100,000 has pressured IBIT valuations considerably. The ETF closed Wednesday at $50.71, representing a 23% decline from the $65.81 Q3 closing price. Despite sharp paper losses, the massive share purchase during Q3 was widely interpreted as a decisive institutional statement about crypto adoption momentum in the United Arab Emirates.
Zayed Aleem, crypto investment platform M2's treasury manager, characterized the position as reflecting exceptional institutional conviction. The development signals that the UAE is consolidating its status as a global digital asset hub, with major sovereign wealth entities allocating meaningful capital to crypto infrastructure.
Crypto commentator MartyParty described the stake as representing a strategic bet on Bitcoin's role as a store of value within diversified portfolios.
IBIT experienced its most significant daily outflows since its January 2024 launch on the day Bitcoin briefly touched $88,000, with $523.2 million in redemptions occurring across a single session. Despite the recent volatility, the fund has accumulated approximately $63.12 million in cumulative net inflows since inception, maintaining positive total flows despite the recent outflow spike.
ETF analyst Eric Balchunas characterized IBIT's current environment as an "ugly stretch," noting that year-to-date flows remained extraordinarily robust at $25 billion. He calculated $3.3 billion in total outflows across all Bitcoin ETFs during the preceding month, representing 3.5% of total assets under management.
This context suggests the recent weakness, while painful, remains modest relative to the structural growth in Bitcoin ETF adoption.
Market participants remain divided on Bitcoin's trajectory for the remainder of 2025. Bitcoin analyst VICTOR characterized the current price range as "the close your eyes and bid” type of opportunity, suggesting that current levels present compelling risk-reward dynamics for long-term accumulators.
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