Abu Dhabi Sovereign Wealth Fund Mubadala Expands Bitcoin Investments, Wisconsin Fund Exits Cryptocurrency ETF Investments
According to the latest 13-F filing, Abu Dhabi Sovereign Wealth Fund Mubadala increased its investment in Bitcoin in the first quarter of 2023, purchasing 491,000 shares of BlackRock iShares Bitcoin Trust (IBIT).
As of March 31, Mubadala held 8,726,972 shares of IBIT, an increase of 6% from the previous quarter, with the value of its holdings at approximately $408.5 million at the end of March, exceeding $512 million at current prices.
This increase in shareholding underscores the sovereign wealth fund's emphasis on Bitcoin, despite the volatile nature of the cryptocurrency's price. According to publicly available data, Mubadala's IBIT holdings account for 0.14% of its total assets of $302 billion.
Meanwhile, the Wisconsin State Investment Board (SWIB) chose to exit Bitcoin ETF investments during the same period, stating that as of March 31, it no longer held any Bitcoin exchange-traded funds (ETFs).
SWIB's recent report shows that as of the second quarter of 2024, it had previously held 6,060,351 shares of IBIT, valued at approximately $321.5 million, but has since liquidated its position.
Earlier, SWIB's holdings replaced its investment in Grayscale's GBTC. However, the latest documents reflect its decision to completely exit this market, indicating that the institution is reassessing its short-term cryptocurrency investments through the ETF structure.
A comparison of the investment strategies between Mubadala and SWIB illustrates the divergence in how different national institutions assess the value of Bitcoin in the fiercely competitive market environment at the beginning of 2025. Despite facing a decline in asset value, Mubadala chose to expand its risk exposure by increasing its shareholding, while SWIB's liquidation indicates a decrease in its risk tolerance or a shift in investment strategy.
As traditional finance and the cryptocurrency sector gradually merge, these two documents reveal the different strategic choices institutional investors are making in response to Bitcoin price volatility amidst the backdrop of this integration, also providing us with a new perspective on observing this merging process.
What do you think about the different strategic behaviors of institutional investors in responding to market volatility? Leave your thoughts in the comments!
