Abu Dhabi Investment Council tripled Bitcoin ETF position ahead of market rout

The Abu Dhabi Investment Council significantly expanded its exposure to Bitcoin during the third quarter, increasing its position in BlackRock’s iShares Bitcoin Trust ETF shortly before a sharp correction hit the broader cryptocurrency market.

Regulatory filings show that ADIC, an independently run arm of Mubadala Investment Co., boosted its holdings in the ETF to almost 8 million shares as of Sept. 30, up from 2.4 million shares at the end of the prior quarter. The stake was valued at about $518 million at the time.

Bitcoin’s rally continued into early October, reaching a record high of $126,251, supported in part by accelerating inflows into exchange-traded products such as the iShares Bitcoin Trust, the largest crypto ETF globally with more than $70 billion in assets.

The upswing proved temporary. A wave of forced liquidations tied to leveraged bets triggered a sharp selloff, sending Bitcoin below $92,000 and erasing much of the recent gains.

Mubadala itself disclosed a separate position of 8.7 million IBIT shares valued at $567 million at the end of the third quarter, unchanged from the previous period.

The ETF, which tracks Bitcoin’s price, has fallen roughly 20% since Sept. 30 after gaining 6.2% during the third quarter.

Institutional interest meets investor pullback

Institutional investors beyond Abu Dhabi have also expanded exposure to Bitcoin-linked products.

Harvard Management Co. increased its IBIT holdings during the third quarter, marking additional interest among prominent US endowments.

However, sentiment has shifted sharply since. Investors have withdrawn about $3.1 billion from a group of 12 US spot Bitcoin ETFs so far in November, according to Bloomberg-compiled data.

Outflows have intensified as the recent selloff pushed many ETF holders into loss-making territory.

IBIT recorded a single-day outflow of $523 million on Tuesday, its largest on record, after Bitcoin breached a key price level that left the average investor across US-listed spot ETFs underwater.

The reversal underscores the speed at which crypto-market momentum can shift, even as major sovereign wealth entities and institutional players move to establish or expand long-term positions.

Bitcoin remains under pressure

Bitcoin is struggling to stay above $91,000 on Wednesday as pressure across the broader crypto market persists.

Ethereum and Ripple are also trading lower, mirroring BTC’s weakness.

Risk appetite has faded since mid-October after Federal Reserve Chair Jerome Powell signalled that a December rate cut is not assured.

The downturn that began with the October 10 flash crash has been reinforced by continued outflows from spot exchange-traded funds and subdued retail participation.

Bitcoin spot ETFs recorded another day of heavy withdrawals, posting $373 million in outflows on Tuesday.

According to SoSoValue, the net asset value of BTC ETFs has fallen to $122.29 billion, down from roughly $170 billion on October 6. Cumulative net inflows now average $58.22 billion.

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