The cryptocurrency space continues to be embraced by traditional financial institutions.
The CEO and managing director of Mubadala Investment Company, one of the sovereign wealth funds of the UAE, revealed that the fund is no longer skeptical of cryptocurrencies and is now investing in the ecosystem.
Khaldoon Al Mubarak told CNBC during a recent interview that the cryptocurrency space has experienced tremendous growth in the past two years. With this, the fund seeks to increase its investment in space. He said:
“I think your (cryptocurrency) is real, this is a business that was worth $200 billion two years ago and is worth $2.5 trillion today, and it's growing. So while many people are skeptical, I don't fit into that category.”
Mubadala Investment Company currently has more than US$234 billion in assets under management, making it one of the largest equity funds in the UAE and the world.
The CEO said the Abu Dhabi-based fund is now actively investing in cryptocurrencies. Their investment goes beyond cryptocurrencies as they are also investing in blockchain companies and other cryptocurrency related companies.
The cryptocurrency space has attracted several traditional financial institutions since the beginning of the year. The market growth has convinced many institutional investors to now consider Bitcoin and other cryptocurrencies as a hedge against inflation.
This latest development came despite Bitcoin struggling below the $50,000 level. Bitcoin hit an all-time high of $69,044 last month, but has underperformed since then. So far, Bitcoin is trading around the $49,000 per currency level.
Bitcoin has lost almost 30% of its value since it peaked. The bearish performance extended to other leading cryptocurrencies, with Ethereum, Binance Coin, Solana, Cardano and others continuing to struggle.
Despite recent struggles, market experts are optimistic that the medium- and long-term outlook for Bitcoin and other cryptocurrencies remains positive.
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