"In 2025, a new source of capital began to play a larger role in shaping Bitcoin's market structure: oil-linked funds from the Gulf region. These capital pools are entering the market through regulated channels, particularly spot Bitcoin exchange-traded funds (ETFs). These inflows could drive the next wave of liquidity. Rather than simply causing temporary price increases, they may support narrower bid-ask spreads, greater market depth and the ability to execute larger trades with less price impact."
"Abu Dhabi has become a focal point for this shift, supported by large pools of sovereign-linked capital and the Abu Dhabi Global Market, which serves as a regulated hub for global asset managers and crypto market intermediaries. Oil-rich investors cite diversification, long-term portfolio construction, 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 major surges have been driven by highly leveraged retail activity and trading on less-regulated platforms. After the first US Bitcoin exchange-traded fund (ETF), ProShares Bitcoin Strategy ETF (BITO), began trading on Oct. 19, 2021, Bitcoin attracted greater attention from institutional investors. In 2025, a new source of capital began to play a larger role in shaping Bitcoin's market structure: oil-linked funds from the Gulf region."
Oil-linked capital from Gulf sovereign wealth funds, state-affiliated firms, family offices and private banking networks began materially influencing Bitcoin markets in 2025. These investors are allocating primarily via regulated channels, notably spot Bitcoin exchange-traded funds, increasing institutional inflows. Abu Dhabi emerged as a central hub, underpinned by large sovereign-linked capital pools and the Abu Dhabi Global Market as a regulated center for asset managers and crypto intermediaries. Motivations include portfolio diversification, long-term construction, generational private-wealth demand and opportunities to develop supporting financial infrastructure. These flows could produce narrower bid-ask spreads, deeper markets and the capacity to execute larger trades with reduced price impact.
Read at Cointelegraph
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