Abu Dhabi’s Mubadala boosts Bitcoin ETF stake to $408.5M despite Q1 slump

Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, has increased its exposure to Bitcoin via BlackRock’s iShares Bitcoin Trust (IBIT), reaffirming institutional appetite for crypto despite short-term volatility.

According to a 13F filing with the US Securities and Exchange Commission (SEC) dated 15 May, Mubadala held 8.7 million IBIT shares as of 31 March 2025, valued at $408.5 million.

This marks a growth of 500,000 shares from its December 2024 holdings, although the overall value dipped from $436 million due to price changes.

The move reflects continued long-term interest in crypto among major global investors, even as some institutions reassess their Bitcoin exposure.

IBIT price fluctuates but demand remains steady

IBIT, one of the most actively traded spot Bitcoin ETFs launched in early 2024, closed at $58.86 on 15 May.

While the ETF has seen strong trading volumes — with over 33 million shares traded daily — its price has not been immune to broader market swings.

The drop in value of Mubadala’s holdings despite the increase in shares highlights this volatility.

Still, IBIT’s appeal lies in its structure. By investing in the ETF, institutions can gain Bitcoin exposure without direct ownership, avoiding complexities around custody, compliance, or managing private keys.

This has made it a preferred vehicle for entities like Mubadala with over $300 billion in assets under management.

State of Wisconsin exits as others increase crypto exposure

While Mubadala expanded its Bitcoin ETF stake, others have pulled back.

The State of Wisconsin Investment Board, which had previously built one of the largest institutional IBIT positions, exited entirely in Q1 2025.

It sold all 6 million shares previously held, worth $355.6 million, marking a sharp change in strategy from its 2024 buying spree.

This divergence among major institutions suggests a recalibration of crypto investment strategies, shaped by short-term price performance, portfolio balancing needs, and differing risk assessments.

Governments step up Bitcoin policy initiatives

Parallel to institutional shifts, government engagement with Bitcoin is also intensifying.

In the US, president Donald Trump has proposed a Strategic Bitcoin Reserve, aimed at establishing national crypto holdings.

The plan, though still in early stages, signals a policy shift toward integrating Bitcoin into fiscal and geopolitical strategy.

Policy reforms at the state level have also accelerated. Missouri is advancing legislation to eliminate capital gains tax on Bitcoin and other digital assets, aimed at incentivising adoption.

Separately, changes in federal banking rules have made it easier for US banks to custody crypto, further legitimising its presence in the financial system.

The mixed signals from institutions like Mubadala and Wisconsin underscore the complexity of the current Bitcoin investment landscape.

But growing regulatory support and a rising number of national-level crypto initiatives suggest that Bitcoin is gaining firmer footing within global financial architecture.