Key data for the van
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In 2025, Gulf oil-related capital, including sovereign wealth funds, family offices, and private banking networks, emerged as a significant influence on Bitcoin’s liquidity dynamics.
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These investors enter Bitcoin primarily through regulated channels, including spot ETFs.
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Abu Dhabi has become a focal point for this shift, backed by large pools of sovereign wealth funds and the Abu Dhabi Global Market, which serves as a regulated hub for global asset managers and crypto market intermediaries.
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Oil-rich investors cite diversification, long-term portfolio building, generational demand within private wealth and opportunities to build supporting financial infrastructure as key drivers of this interest.
Since Bitcoin (BTC) began its first sustained boom in 2013, many of its big jumps have been fueled by high-finance retail activity and trading on less regulated platforms. After the first US Bitcoin exchange-traded fund (ETF), the ProShares Bitcoin Strategy ETF (BITO), began trading on October 19, 2021, Bitcoin gained more attention from institutional investors.
In 2025, a new source of capital began to play a larger role in shaping Bitcoin’s market structure: oil-related funds from the Gulf region. This capital includes sovereign wealth funds, government-linked investment firms, family offices and the private banking networks that serve them.
These equity funds enter the market through regulated channels, particularly spot Bitcoin exchange-traded funds (ETFs). These inflows could trigger the next wave of liquidity. Rather than simply causing temporary price increases, they can support tighter bid-ask spreads, greater market depth, and the ability to execute larger trades with less price impact.
This article examines how oil-related investors can influence crypto market liquidity, describes what the next wave of liquidity might look like, and explains why these funds are interested in Bitcoin. It also highlights Abu Dhabi’s role as a regulated hub and a practical liquidity boundary.
Who are these oil-related investors and why are they important to market liquidity
The term “oil rich investors” refers to a network of capital managers whose resources are linked, directly or indirectly, to hydrocarbon revenues:
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Sovereign wealth funds and government-linked entities in the Gulf, which oversee large asset bases and often shape regional investment trends
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Ultra-high-net-worth individuals and family offices, which can move faster than sovereign wealth funds and typically route demand through private banks and wealth advisers
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International hedge funds and asset managers operating in Abu Dhabi and Dubai, attracted in part by proximity to the regional capital.
For liquidity, the key factor is not only the size of these allocations, but also the way in which they are distributed. Many of these positions are routed through vehicles and platforms designed for institutional participation, which can support a stronger market structure.
did you know Spot Bitcoin ETFs do not hold futures contracts. Instead they keep Bitcoin in custody. This means that net inflows generally require the purchase of BTC in the spot market, linking investor demand more directly to spot liquidity than to derivatives-based exposure.
What the next wave of liquidity really means
From a market structure perspective, a liquidity wave is typically characterized by:
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Larger, more consistent daily flows into regulated products instead of short-term spikes
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Deeper order books and narrower spreads in spot markets
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Increased ETF activity in the primary market, including the creation and redemption of shares, which usually involves professional hedging
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Stronger, more resilient derivatives markets, including futures and options, supported by regulated venues and clearing services.
The key difference compared to previous cycles is the maturation of the market infrastructure. Spot Bitcoin ETFs provide a familiar, regulated vehicle for traditional investors. Meanwhile, superior brokerage services, institutional custody and regulated trading venues have reduced operational friction for large-scale allocations.
did you know Authorized participants, not ETF issuers, typically manage the buying and selling of Bitcoin associated with ETF flows. These large financial firms create and redeem ETF shares and can hedge in the spot and derivative markets, influencing day-to-day liquidity behind the scenes.
Conservative capital flows associated with Abu Dhabi
Spot Bitcoin ETFs have become an easy avenue for this type of capital. The structure and risk profile of crypto ETFs, such as BlackRock’s iShares Bitcoin Trust (IBIT), differ from traditional registered funds. For investors focused on governance and compliance, these differences can be important.
During the third quarter of 2025, Abu Dhabi Investment Council increased its exposure to Bitcoin by expanding its position in IBIT. A regulatory filing shows the fund increased its stake from about 2.4 million shares to nearly 8 million as of Sept. 30, with a position worth roughly $518 million at the end of the quarter based on the closing price.
These figures suggest that Gulf-based capital is gaining more exposure to Bitcoin through US-regulated listings. Even when conducted through outright ETF purchases, such inflows can support liquidity as market makers and authorized participants can hedge exposure to spot and derivative markets as flows change.
Why Abu Dhabi’s oil-linked capital is interested in Bitcoin
There are several overlapping reasons why oil-rich investors are interested in Bitcoin:
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Diversification and long-term portfolio strategy: Gulf investors, particularly those linked to sovereign entities, often look for long-term themes, diversification and global opportunities. Some institutions define Bitcoin as a potential long-term store of value, similar to the way gold is used in multi-asset portfolios, although Bitcoin’s risk profile and volatility are fundamentally different.
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Changes of generations in private wealth: Some wealth managers in the UAE report growing client interest in regulated exposure to digital assets, particularly among younger high-net-worth investors. This has encouraged traditional platforms to expand access through regulated products and venues.
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Construction of supporting infrastructure: In addition to direct allocations, parts of the region are investing in crypto market infrastructure, including regulated exchanges, custodial solutions and derivatives platforms. These systems can reduce operational friction for institutional participation and can support more durable liquidity over time.
did you know Many spot Bitcoin ETFs use multiple custodians and layers of insurance. This setting reflects institutional risk management standards and reassures conservative investors who would never take custody themselves private keys.
Geography Matters: The UAE’s Role as a Regulated Hub
Liquidity tends to concentrate when regulation, licensing and institutional counterparties are reliable. The United Arab Emirates has built a multi-layered framework that combines federal supervision with specialized free financial zones, such as the Abu Dhabi Global Market (ADGM).
Several events supported ADGM’s positioning as an institutional base. For example, Binance obtained regulatory authority under the ADGM framework.
According to Reuters reportADGM has seen rapid growth in assets under management, which the report attributed to the proximity of the state capital in Abu Dhabi. When market makers, prime brokers, hedge funds and wealth platforms are grouped together in one jurisdiction, it can support more continuous two-way flow, stronger hedging activity and tighter pricing.
How Oil-Linked Capital Can Strengthen Bitcoin’s Liquidity
Inflows from sovereign wealth funds linked to the oil economy can introduce an additional layer of institutional demand in the Bitcoin market, which can support liquidity and market depth.
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ETF flywheel: Institutional purchases through spot ETFs can trigger stock creation, hedging activity and related trading by professional brokers. This can increase turnover and reduce spreads, especially when inflows are stable.
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Large trading over the counter and top mediation: Large investors often prefer block trade and financing options to reduce market impact. This can encourage intermediaries to invest capital and improve execution services.
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Regulated derivatives and settlement: A more developed, regulated derivatives ecosystem can improve price discovery and risk transfer. It can also help market makers manage risk more effectively, which can support tighter quotes in the spot market.
did you know Spot Bitcoin ETFs trade during stock market hours, while Bitcoin trades 24/7. This mismatch can contribute to price gaps in the open equity market, especially after large overnight moves or weekend volatility in crypto markets.
Institutional exits and liquidity limits
Institutional participation does not eliminate downside risk. Bitcoin remains volatile, and even widely used products can see sharp outflows.
For example, Reuters reported that BlackRock’s iShares Bitcoin Trust (IBIT) saw a record one-day net outflow of about $523 million on November 18, 2025, during a broader pullback in the crypto market. The report cited factors such as profit-taking, weakening momentum and a change in preference for gold.
Availability of access does not guarantee continued allocation. Liquidity flows both ways, so the same infrastructure that supports large inflows can also enable rapid exits.
Governments also shape the regulatory environment. Changes in policy and oversight may expand or limit the way funds access Bitcoin-related products and, in some cases, Bitcoin itself.
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