Headline: UAE sovereign funds double down on BlackRock’s Bitcoin ETF as overall institutional allocations fall At a time when Bitcoin has slid sharply from recent highs, filings show some Abu Dhabi investors are using the dip to add to their positions — even as many institutions trim exposure to BlackRock’s spot Bitcoin ETF (IBIT). What the filings show - According to quarterly 13F filings with the U.S. SEC, two Abu Dhabi-based entities held more than $1 billion combined in IBIT at the end of 2025. Mubadala Investment Company reported owning 12,702,323 shares (worth roughly $630 million), up 46% from 8.7 million shares in Q3. Al Warda Investments held 8,218,712 shares (about $408 million). - Despite that accumulation, aggregate institutional behavior was more muted: overall institutional ownership of IBIT fell by just 0.41% quarter-on-quarter, but institutional long positions decreased by around 10% and the average portfolio allocation to IBIT plunged 28%. Fintel data shows a net reduction of 41.36 million institutional shares between Q3 and Q4. Context and interpretation - The divergence highlights two concurrent trends: selective buying by sovereign wealth and state-linked investors, and broad rebalancing and profit-taking by other institutions after Bitcoin’s earlier run-up. Bitwise senior investment strategist Juan Leon noted, “Mubadala sovereign wealth fund doubled down on BTC during the Q4 drawdown.” Bitcoin historian Peter Rizzo summed up the broader pattern: “nations are buying the dip.” - Bitcoin’s price fell roughly 30% over the same period, from about $126,000 to $87,000 — a pullback that likely prompted many managers to reduce ETF weightings to rebalance risk and lock in gains. Limitations of the data - 13F filings only disclose reported long equity holdings for U.S.-reporting investment managers above certain thresholds, so they don’t capture the full range of institutional strategies. Short positions and derivatives exposure — for example through CME futures or other platforms — are largely outside the 13F scope and can tell a different story about net risk stance. Broader market picture - The drawdown has also hit ETF assets under management: BlackRock’s IBIT AUM fell from a record $95 billion to about $57 billion, while total U.S. spot Bitcoin ETF AUM dropped from $162 billion to $100 billion, according to The Block. Takeaway - The filings reveal a split market: state-linked buyers in the UAE appear confident enough to increase their IBIT stakes during the pullback, even as many institutional players modestly reduce exposure — likely driven by rebalancing, profit-taking, and risk management. Disclaimer: This content is informational and not investment advice. Cryptocurrency trading carries high risk; do your own research. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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