invezz.com
The Abu Dhabi Investment Council significantly expanded its exposure to Bitcoin during the third quarter, increasing its position in BlackRock’s iShares Bitcoin Trust ETF shortly before a sharp correction hit the broader cryptocurrency market.
Regulatory filings show that ADIC, an independently run arm of Mubadala Investment Co., boosted its holdings in the ETF to almost 8 million shares as of Sept. 30, up from 2.4 million shares at the end of the prior quarter. The stake was valued at about $518 million at the time.
Bitcoin’s rally continued into early October, reaching a record high of $126,251, supported in part by accelerating inflows into exchange-traded products such as the iShares Bitcoin Trust, the largest crypto ETF globally with more than $70 billion in assets.
The upswing proved temporary. A wave of forced liquidations tied to leveraged bets triggered a sharp selloff, sending Bitcoin below $92,000 and erasing much of the recent gains.
Mubadala itself disclosed a separate position of 8.7 million IBIT shares valued at $567 million at the end of the third quarter, unchanged from the previous period.
The ETF, which tracks Bitcoin’s price, has fallen roughly 20% since Sept. 30 after gaining 6.2% during the third quarter.
Institutional interest meets investor pullback
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Institutional investors beyond Abu Dhabi have also expanded exposure to Bitcoin-linked products.
Harvard Management Co. increased its IBIT holdings during the third quarter, marking additional interest among prominent US endowments.
However, sentiment has shifted sharply since. Investors have withdrawn about $3.1 billion from a group of 12 US spot Bitcoin ETFs so far in November, according to Bloomberg-compiled data.
Outflows have intensified as the recent selloff pushed many ETF holders into loss-making territory.
IBIT recorded a single-day outflow of $523 million on Tuesday, its largest on record, after Bitcoin breached a key price level that left the average investor across US-listed spot ETFs underwater.
The reversal underscores the speed at which crypto-market momentum can shift, even as major sovereign wealth entities and institutional players move to establish or expand long-term positions.
Bitcoin remains under pressure
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Bitcoin is struggling to stay above $91,000 on Wednesday as pressure across the broader crypto market persists.
Ethereum and Ripple are also trading lower, mirroring BTC’s weakness.
Risk appetite has faded since mid-October after Federal Reserve Chair Jerome Powell signalled that a December rate cut is not assured.
The downturn that began with the October 10 flash crash has been reinforced by continued outflows from spot exchange-traded funds and subdued retail participation.
Bitcoin spot ETFs recorded another day of heavy withdrawals, posting $373 million in outflows on Tuesday.
According to SoSoValue, the net asset value of BTC ETFs has fallen to $122.29 billion, down from roughly $170 billion on October 6. Cumulative net inflows now average $58.22 billion.