In a significant move that underscores the growing institutional appetite for cryptocurrency, Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, has dramatically increased its holdings in BlackRock’s iShares Bitcoin Trust (IBIT). As of December 31, Mubadala reported owning 12.7 million shares, valued at approximately $630.6 million, marking a 46% rise from the 8.7 million shares it held in September.
A Strategic Shift in Diversification
Mubadala, which manages a vast global portfolio spanning technology, healthcare, infrastructure, and public markets, has been actively seeking to diversify its investments beyond traditional assets. With over $330 billion in assets under management, the fund’s strategic shift towards digital assets reflects a broader trend of institutional investors recognizing the potential of Bitcoin as a store of value and a hedge against economic uncertainties.
Regional Investment Momentum
The increase in Mubadala’s Bitcoin ETF holdings is not an isolated incident. Al Warda Investments, another Abu Dhabi-based firm under the Mubadala umbrella, also boosted its IBIT holdings to 8.22 million shares in Q4 2025, up from 7.96 million in Q3. This move is part of a broader strategy shift that began earlier in the year, signaling a growing interest in public Bitcoin ETF allocations within the region.
Institutional Adoption Gains Traction
The surge in institutional adoption of Bitcoin ETFs is not limited to Abu Dhabi. Jane Street, a leading quantitative trading firm, significantly increased its IBIT holdings by 7.1 million shares, bringing its total stake to 20.3 million shares valued at $790 million. BlackRock and Morgan Stanley also bolstered their positions by more than 2.37 million shares, further solidifying the trend.
Goldman Sachs and Harvard Join the Trend
Notably, Goldman Sachs, which has historically been cautious about Bitcoin, disclosed a total crypto exposure of $2.36 billion, including a $1.1 billion position in IBIT. This marks a significant shift from the firm’s earlier skepticism. Meanwhile, Harvard University, known for its conservative investment approach, adjusted its crypto holdings in Q4 2025, reducing its Bitcoin position by 21% to 5.35 million IBIT shares ($265.8 million) while establishing a new $86.8 million stake in BlackRock’s iShares Ethereum Trust.
State-Level Adoption: Texas Leads the Way
State governments are also getting in on the action. In November 2025, Texas became the first U.S. state to purchase Bitcoin for its Strategic Reserve, acquiring $5 million worth of IBIT shares at approximately $87,000 per BTC. The state is currently finalizing plans for self-custody of the asset, a move that could set a precedent for other states considering similar strategies.
Looking Ahead
The growing institutional and state-level adoption of Bitcoin ETFs is a clear indicator of the asset’s increasing legitimacy and potential as a financial instrument. As more firms and governments explore the benefits of digital assets, the market is likely to see increased liquidity, regulatory clarity, and broader acceptance. Mubadala’s significant investment in IBIT is a testament to the changing landscape of global finance and the evolving role of Bitcoin in institutional portfolios.
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