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Mubadala Increases Bitcoin ETF Stake – Geopolitics and a New Chapter for Global Cryptocurrency Investments
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Context: Bitcoin as a Strategic Sovereign Wallet Asset
In May 2025, Abu Dhabi, through its sovereign fund Mubadala, is setting new standards for institutional cryptocurrency investments. Increasing its stake in the BlackRock iShares Bitcoin Trust ETF to 8,73 million shares – worth more than $512 million – is not just a financial decision, but also a signal of a shift in the balance of power in the global digital asset market127912. With competition growing between the United States and the United Arab Emirates (UAE) for the title of global cryptocurrency hub, this move takes on particular significance.
Mubadala, BlackRock and US-Emirati Play for Crypto Market Future
The scale of the investment and its significance
Mubadala, which manages over $300 billion in assets, increased its stake in the BlackRock (IBIT) Bitcoin spot ETF by 2025 shares in the first quarter of 491, reaching a total of 8,73 million shares7912. This strategic increase in exposure occurred despite a short-term correction in the BTC price – the fund not only maintained but also strengthened its position, which distinguishes it from other institutions that reduced their exposure at the same time (e.g. Wisconsin Pension Fund)71112.
Institutionalizing Bitcoin and a New Era of National Reserves
The move is part of a broader trend: more and more countries and national funds are considering Bitcoin as part of their strategic reserves, alongside gold and bonds.3. According to Steven Lubka, head of private clients at Swan, we are witnessing a “global race to build sovereign reserves in BTC”3. The US, China and the UK are already working on their own strategies, and cryptocurrency reserve legislation is being considered in 21 US states.3.
Geopolitical Implications: Competition, Partnerships and Regulation
UAE as a Global Crypto Hub
The United Arab Emirates, by removing taxes on crypto transactions and creating a friendly regulatory environment (VARA, RAK Digital Oasis), attracts the world's largest companies and funds56. Abu Dhabi has launched its own Blockchain Center, supporting the development of start-ups and large players, while Dubai DMCC already brings together over 600 companies in the industry456. Mubadala's decision is consistent with its strategy to diversify its economy and become less dependent on oil.
USA: from competition to cooperation?
In the United States, after the change of administration and the pro-crypto declarations of the president, we are seeing a gradual transition from restrictions to a clear regulatory framework28. SEC eases rates, while BlackRock and Fidelity spot ETFs attract billions of dollars in inflows12. Eric Trump, the president's son, emphasized during a conference in Abu Dhabi that the US wants to be the "crypto capital of the world"24.
Practical implications for the market
Increased liquidity and acceptance of ETFs: IBIT BlackRock sees record inflows, with participation of Middle Eastern institutions stabilizing the market12.
Pressure on other countries: More sovereign funds (e.g. from Bahrain, Hong Kong) are considering entering the BTC ETF.
New tax and compliance policy: UAE trendsetter on no-tax, flexible licensing could force EU, US to review own rules56.
Technical Data and Current Position of Mubadala in Bitcoin ETF (May 2025)
| Parameter | Value |
|---|---|
| Number of IBIT shares | 8 726 972 |
| Item Value | 512 million USD |
| Participation in AUM Mubadala | 0,14% |
| ETF | BlackRock iShares Bitcoin Trust |
| BTC price | approx. $96 |
| ETF Official Website | BlackRock iShares Bitcoin Trust |
| Quotations | IBIT on Nasdaq |
Summary
Mubadala’s increase in Bitcoin ETF stake is not only a signal of confidence in cryptocurrencies as an asset class, but also an element of the geopolitical game for the future of finance. The UAE is ahead of the competition, creating the most friendly environment for crypto in the world and is becoming a real competitor to the US in the fight for the status of a global blockchain center. For the market, this means increased liquidity, professionalization and pressure for institutions to further open up to digital assets.
Conclusions:
Bitcoin is becoming a reserve asset not only for companies but also for countries.
The UAE and the US are racing for dominance in the crypto sector, which is driving innovation and easing regulation.
Investors should watch the movements of sovereign funds – they could set trends for the decade.
“It’s not just an investment – it’s a signal that Bitcoin is becoming a part of global economic policy.” – Steven Lubka, Swan Private3.
Recommendation: Follow regulatory developments in the UAE and the US, ETF inflows, and the decisions of more national funds. These are the movements that will shape the crypto market in the second half of the decade.
