The national investment fund of Abu Dhabi and the State Investment Council of Wisconsin have recently drawn attention by announcing an investment of nearly 1 billion USD in Bitcoin ETFs through BlackRock's IBIT fund. This is a significant move, indicating the growing interest of institutional investors in cryptocurrencies.
Abu Dhabi Purchases 436 Million USD Bitcoin ETF
According to a report from Mubadala Investment Company - the national investment fund of the Abu Dhabi Government #UAE , they spent 436.9 million USD to purchase Bitcoin ETF shares through BlackRock's iShares Bitcoin Trust (IBIT) in the fourth quarter of 2024.
This investment only accounts for 0.14% of the total 302 billion USD in assets under management of the fund, but it has made Abu Dhabi the seventh-largest owner of BlackRock's Bitcoin ETFs in the world.
This move comes right after BlackRock received a business license in Abu Dhabi in November 2024. This is not the first time Abu Dhabi has approached the cryptocurrency market. Previously, they participated in Bitcoin mining with Marathon Digital and Zero Two in October 2023, and they plan to develop a large-scale Bitcoin mining facility.
Additionally, the UAE is also enhancing its presence in the crypto sector by collaborating with Tether (USDT) to integrate stablecoins into the national financial system while exempting VAT on cryptocurrency transactions in the region.
Wisconsin Doubles IBIT Shares
At the same time, the State Investment Council #Wisconsin (SWIB) significantly increased its holdings of IBIT shares to over 6 million shares, an increase of nearly 110% compared to 2.9 million shares in August 2024.
Initially, Wisconsin only invested in Grayscale Bitcoin ETF in small amounts, but quickly expanded its portfolio to 335.1 million USD by the end of 2024. If the price of Bitcoin continues to hold at 98,000 USD, the total portfolio value of SWIB could reach 588 million USD.
Notably, Wisconsin is the first public investment fund in the US to purchase Bitcoin ETFs, paving the way for other states like Florida and Michigan to also invest in Bitcoin and Ethereum ETFs.
New Investment Trend in Crypto?
The large investment from Abu Dhabi and Wisconsin shows trust in the growth potential of Bitcoin. This could create a domino effect, encouraging more large financial institutions to participate in the cryptocurrency market.
However, the cryptocurrency market always carries high risks and volatility. Investors should carefully consider before participating and only invest money they can afford to lose.
Note: This article is for informational purposes only and is not investment advice. Crypto is a risky market, not suitable for all investors. #anhbacong
