Abu Dhabi Funds Ride Out Q2 Bitcoin Losses Without Selling

Abu Dhabi's sovereign investment vehicles, Mubadala and ADIC, have shown remarkable resilience in their bitcoin bet. Despite a $118 million hit to their Blackrock spot bitcoin exchange-traded fund (ETF) positions in Q2, they did not reduce their net shares in the IBIT ETF.

The funds reported holding 22.94 million IBIT shares worth nearly $764 million on June 30, making them one of the largest institutional holders of the ETF. Mubadala held approximately $490.1 million worth of IBIT shares, while ADIC held about $273.6 million.

Notably, both funds increased their stakes in IBIT before the quarter-end losses. Mubadala built its position by nearly 16% during Q1, and ADIC's stake represented more than one-third of its reported U.S. securities portfolio.

The Abu Dhabi Investment Council has been actively building regulated infrastructure around virtual assets for years, making their bitcoin investment a strategic move to tap into the sector through a regulated security.