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The Abu Dhabi Investment Council (ADIC) made one of its largest digital-asset moves to date in the third quarter, significantly increasing its stake in BlackRock’s spot Bitcoin ETF (IBIT). According to a new Bloomberg report, the sovereign wealth entity nearly tripled its holdings between July and September, marking a major institutional endorsement of Bitcoin from one of the UAE’s most influential financial bodies.
ADIC, an investment arm of the Mubadala Investment Company, told Bloomberg it views Bitcoin as the digital equivalent of gold—a statement that underscores the region’s growing confidence in the asset despite ongoing volatility. This strong positioning came just before Bitcoin surged to a record high of $125,100 in early October, only to fall sharply below $90,000 this week.
A Strategic Accumulation Despite Market Swings
Bloomberg’s data shows that ADIC boosted its holdings from 2.4 million IBIT shares at the start of Q3 to nearly 8 million by September 30. At the time, the position was valued at around $520 million, based on the ETF’s closing price of $65 per share.
IBIT briefly climbed to $71 on October 6, the day after Bitcoin reached its new all-time high. But the recent downturn has dramatically shifted the landscape. With Bitcoin sliding back under $100,000, IBIT has also fallen, closing Wednesday at $50.71—a decline of roughly 23% since the end of the quarter.
Despite this pullback, ADIC’s aggressive accumulation has been interpreted as a signal that institutional adoption remains strong, particularly in the UAE, where digital-asset investment frameworks continue to advance.
Institutional Confidence Rising in the UAE
The UAE has positioned itself as a global hub for digital-asset innovation, and ADIC’s substantial expansion into Bitcoin further bolsters that image.
Zayed Aleem, treasury manager at the crypto investment firm M2, praised the move in a LinkedIn post, describing it as “a strong sign that the UAE is securing its place in the global digital-asset ecosystem.”
Crypto commentator MartyParty echoed this sentiment, noting that ADIC’s larger position represents a strategic bet on Bitcoin’s role as a long-term store of value.
The timing of the announcement is significant. It comes just one day after IBIT recorded its largest daily outflow since launching in January 2024—more than $523 million—as Bitcoin briefly dipped to $88,000. Even so, many analysts argue the renewed volatility is creating an attractive environment for long-term institutional buyers.
IBIT Struggles Despite Strong Year-to-Date Performance
While IBIT has experienced strong adoption in 2024 and early 2025, analysts say the recent downturn is testing investor sentiment. ETF specialist Eric Balchunas described the current period as an “ugly stretch,” noting that Bitcoin ETFs have seen $3.3 billion in combined outflows over the past month.
Still, Balchunas pointed out that IBIT remains one of the strongest ETFs in terms of inflows this year, with $25 billion in year-to-date net inflows—ranking it sixth among all ETFs.
Data from Farside shows that since its launch, IBIT has taken in approximately $63 million, demonstrating consistent institutional participation despite recent turbulence.
Whales and Large Investors Buying the Dip
Market analysts note that large Bitcoin holders appear to be using the recent correction as a buying opportunity. Data from Glassnode shows accumulation increasing across wallets holding more than 1,000 BTC, suggesting a shift from short-term panic to long-term confidence.
This trend is consistent with observations from analysts who believe Bitcoin’s current drawdown resembles a corrective phase rather than a broader reversal.
Bitcoin analyst VICTOR recently remarked that the current price zone represents a “close your eyes and bid” opportunity, indicating growing sentiment that the market may be approaching a local bottom.
Forced Selling May Be Nearing an End
Some experts believe the market’s recent sharp decline may be linked to forced selling rather than organic bearish sentiment. Tushar Jain, co-founder of Multicoin Capital, suggested in a post that the selling pattern feels “systematic” and likely tied to major liquidations.
He added that such intense forced selling typically does not last long, hinting that pressure may ease soon—possibly paving the way for price stabilization or a rebound.
A Strong Signal for Global Crypto Markets
ADIC’s decision to triple its Bitcoin ETF exposure during a volatile quarter sends a clear message: long-term confidence from major institutions is holding firm. For the UAE, it reinforces the nation’s growing role as a forward-thinking hub for digital-asset adoption. And for Bitcoin, it suggests that despite the recent turbulence, big players continue to see value in building long-term positions.
