Abu Dhabi's Sovereign Funds Keep Bitcoin Stake Despite $118 Million Loss

Abu Dhabi's two sovereign funds, Mubadala Investment Company and Abu Dhabi Investment Council, suffered a significant loss on their BlackRock Bitcoin ETF position last quarter. According to SEC filings, they lost $118 million as their stake in the iShares Bitcoin Trust (IBIT) fell from $881 million to $764 million.

The funds reported holding 22.94 million shares of IBIT on June 30, down from 25.15 million three months earlier. Bitcoin's price peaked in May at around $82,139 but erased those gains by the end of June when it traded at $58,559, a drop of 17.9%.

Despite this significant loss, neither fund sold any shares. Mubadala had invested more in IBIT in the first quarter, when Harvard University cut its stake by 43%. In contrast to other institutions, which trimmed their positions and rotated into staked Ethereum products, Abu Dhabi's sovereign funds seem to be taking a long-term approach.

As one of the largest investors in Bitcoin, the decision not to sell during the price drop is notable. The funds' patience will be tested as they sit through market volatility, with November's disclosure set to reveal whether their strategy pays off.