The Abu Dhabi Investment Council (ADIC) significantly increased its investment in Bitcoin prior to the cryptocurrency’s considerable decline, more than tripling its holdings in BlackRock’s iShares Bitcoin Trust (IBIT) during the third quarter, as indicated by regulatory filings.

ADIC, an independently operated investment body within Mubadala Investment Co., augmented its shareholdings to nearly 8 million IBIT shares by September 30.

The total value of this position was approximately $518 million at the time, rising from 2.4 million shares just three months earlier, according to reports from Bloomberg.

This strategic accumulation by the Abu Dhabi council transpired just weeks before Bitcoin reached a historical peak in early October, followed by a decline below $92,000 as leveraged bets were unwound across the market.

According to a council spokesperson, this decision is part of a broader long-term diversification strategy, with Bitcoin being characterized as a digital equivalent of gold. The allocation aims to complement the fund’s traditional store-of-value assets.

Additionally, Mubadala has reported holding 8.7 million IBIT shares valued at $567 million at the end of the third quarter, a figure that remained stable from the previous filing. Other prominent institutions, including Harvard University, also increased their IBIT allocations during this timeframe.

However, the investor enthusiasm appears to have diminished following the October sell-off, with U.S. spot Bitcoin exchange-traded funds (ETFs) experiencing approximately $3.1 billion in outflows in November, as per Bloomberg data.

Earlier this year, MGX— a technology investment firm supported by Mubadala—acquired a $2 billion stake in Binance, financed through a stablecoin linked to the family of former U.S. President Donald Trump.

Within ADIC, the decision to venture into Bitcoin aligns with a broader initiative for global expansion. Established in 2007 and now integrated within Mubadala, the council continues to operate under its own investment mandate and strategy.

Recently, ADIC has bolstered its leadership, appointing executives such as Alain Carrier, former head of international business at the Canada Pension Plan Investment Board, and Ben Samild, previously the chief investment officer at Australia’s sovereign wealth fund, as reported by Bloomberg.

While the inherent volatility of cryptocurrency presents challenges for global investors, Abu Dhabi’s approach signifies a shifting perspective: major sovereign funds are increasingly inclined to regard Bitcoin as a long-term strategic asset.

Moreover, other governments are adopting similar stances. El Salvador invested over $100 million in Bitcoin this week, the Czech central bank announced its first cryptocurrency purchase, and Kazakhstan is developing a national cryptocurrency reserve fund projected to reach $1 billion.

Currently, Bitcoin’s price hovers around the $90,300 mark.

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