The cryptocurrency space continues to gain adoption from traditional financial institutions.
The CEO and Managing Director of Mubadala Investment Company, one of United Arab Emirates’ sovereign wealth funds, has revealed that the fund is no longer sceptical of cryptocurrencies and is now investing in the ecosystem.
Khaldoon Al Mubarak told CNBC during a recent interview that the cryptocurrency space has experienced massive growth over the past two years. As a result, the fund is seeking to increase its investment in the space. He said;
“I think its (crypto) is real, this is a business that had $200 billion worth of value two years ago, and is $2.5 trillion value today and growing. So while many people are skeptics, I do not fall in that category.”
Mubadala Investment Company currently has more than $234 billion in assets under management, making it one of the largest wealth funds in the United Arabs Emirates and the world.
The CEO said the Abu Dhabi-headquartered fund is now actively investing in cryptocurrencies. Their investment goes beyond cryptos as they are also investing in blockchain firms and other crypto-related companies.
The cryptocurrency space has attracted numerous traditional financial institutions since the start of the year. The growth of the market has convinced many institutional investors to now consider Bitcoin and other cryptocurrencies as a hedge against inflation.
This latest development comes despite Bitcoin currently struggling below the $50k level. Bitcoin reached an all-time high of $69,044 last month but has underperformed since then. At press time, Bitcoin is trading around the $49k level per coin.
Bitcoin has lost nearly 30% of its value since it reached the all-time high. The bearish performance has extended to other leading cryptocurrencies, with Ethereum, Binance Coin, Solana, Cardano and others all struggling.
Despite the recent struggles, market experts are optimistic that the medium and long-term outlook of Bitcoin and other cryptocurrencies remain positive.