From Big To Bigger: Abu Dhabi Investment Council Triples Bitcoin ETF Exposure

Abu Dhabi Investment Council nearly tripled its holdings in BlackRock’s iShares Bitcoin Trust during the third quarter, growing from about 2.4 million shares to nearly 8 million by September 30. The position was valued at roughly $518 million at quarter end.

Big Buy Ahead Of A Price Peak

According to market reports, that build-up happened just before Bitcoin hit new highs in early October, when prices crossed the $125,000 mark. The timing left the fund with a much larger exposure to Bitcoin-linked ETFs right as investor sentiment became far more volatile.

A sovereign fund increasing an ETF position by this scale sends a clear message about how some big public investors now see crypto: as an asset class worth holding.

That does not mean the bet is risk-free. ETF shares can be redeemed, market swings can be sharp, and paper gains can evaporate quickly when prices reverse.

Reports indicate ADIC treated the ETF as a long-term store of value, but short-term price action has already tested that view.

Record Withdrawals Hit The Fund

Spot ETFs then faced heavy redemptions in November. BlackRock’s IBIT recorded a record single-day outflow of about $523 million, marking the largest one-day withdrawal since the ETF launched in January 2024. The outflow was part of a run of redemptions that month and signaled growing caution among some holders.

Those redemptions came as bitcoin slid from its October highs. The pullback has left some big buyers holding positions that look less favorable on paper.

Some analysts argue these moves—both buying and selling at scale—are part of a normal allocation cycle for institutional investors. Others warn rapid inflows and outflows can magnify price swings for everyone in the market.

Signals For Other Investors

According to the coverage, ADIC’s increase shows that parts of the global investing community are prepared to use regulated US ETFs to gain bitcoin exposure.

That preference for regulated vehicles can increase the pool of buyers in good times, while also creating new pressure points when sentiment shifts and large redemptions occur.

A big public fund made a bold move into bitcoin via a major US ETF and did so just before the market cooled. The trade highlights both the growing mainstream interest in crypto and the risks that come with fast moves in and out of large ETF positions.

In the meantime, the facts are straightforward: holdings spiked to nearly 8 million IBIT shares worth about $518 million at quarter end, and the ETF later saw a record $523 million single-day outflow as prices fell from early October highs.

Featured image from Wanderlust Magazine, chart from TradingView