Abu Dhabi Doubles Down on Bitcoin as Wisconsin Pulls Out: A Tale of Two State Funds

Abu Dhabi’s sovereign wealth fund Mubadala is betting bigger on Bitcoin, boosting its position in BlackRock’s iShares Bitcoin Trust (IBIT) even as other institutional investors, like Wisconsin’s public pension fund, head for the exits.

According to its Q1 2025 13-F filing, Mubadala acquired an additional 491,000 shares of IBIT, lifting its total holdings to 8.7 million shares as of March 31. This represents a 6% increase from the previous quarter and puts the position's value at approximately $408.5 million at quarter-end—rising to over $512 million at current market prices.

The move signals a deepening crypto conviction by one of the Middle East’s largest investment arms, even as Bitcoin remains volatile. Mubadala’s IBIT investment now accounts for 0.14% of its $302 billion in assets under management. It joins a growing list of state entities in Abu Dhabi, such as ADIA, ADQ, and EIA, that are exploring digital asset exposure, positioning the emirate as a rising institutional force in the crypto space.

In stark contrast, the State of Wisconsin Investment Board (SWIB) has opted out. Its latest quarterly filing shows a complete divestment from IBIT and other Bitcoin ETFs as of March 31. This marks a sharp pivot from the previous quarter when SWIB held over 6 million IBIT shares worth $321.5 million—more than double what it had in mid-2024 after previously rotating out of Grayscale’s GBTC.

The divergence between Mubadala and SWIB showcases the split in how sovereign and institutional investors are managing Bitcoin exposure in 2025. Mubadala is embracing the long game, expanding holdings during price dips, while SWIB appears to be prioritizing short-term risk management amid uncertain crypto market conditions.

These contrasting moves underscore how Bitcoin ETFs are reshaping global asset allocation strategies—depending on where in the world you are and how much volatility you're willing to accept.