Key Takeaways
- The National Bank of Bahrain has launched its first Bitcoin investment fund for institutional investors in the Gulf Cooperation Council, with capped gains and full downside protection.
- Developed in partnership with ARP Digital, the fund offers a secure and structured way to invest in Bitcoin within Bahrain's growing Bitcoin and crypto ecosystem.
- Bahrain and the UAE are leading efforts in the Middle East to create innovation-friendly regulations for Bitcoin and crypto, driving institutional interest.
National Bank of Bahrain Launches Bitcoin Investment Fund
The National Bank of Bahrain, a commercial bank, has introduced its first Bitcoin investment fund, targeting institutional investors in the Gulf Cooperation Council (GCC).
The fund offers investors exposure to Bitcoin, with gains capped at a predefined threshold and 100% downside loss protection.
This marks a significant step for Bahrain’s financial sector in embracing Bitcoin and crypto and providing innovative investment products.
The bank is a publicly listed commercial entity in Bahrain.
Bahrain Mumtalakat Holding Company, the sovereign wealth fund of Bahrain, is a majority shareholder of the bank, owning 44.06% of its shares at the time of writing.
Partnership with ARP Digital
The Bitcoin fund was developed in partnership with digital asset firm ARP Digital, combining expertise in both finance and digital assets.
The product is designed to introduce Bitcoin exposure in a highly secure and calculated framework for investors seeking controlled risk.
Abdullah Kanoo, co-founder and co-CEO of ARP Digital, emphasized the opportunity this fund provides for institutional investors to engage with digital assets.
Growing Bitcoin and Crypto Friendly Ecosystem in Bahrain and the UAE
Bahrain has been attracting digital asset businesses through efforts to create a balanced regulatory environment that encourages innovation.
Crypto.com, Binance, and BitOasis have all established operations in Bahrain, following regulatory advancements aimed at fostering a Bitcoin and crypto-friendly ecosystem.
In the UAE, the Virtual Asset Regulatory Authority (VARA) continues to lead with comprehensive Bitcoin and crypto regulations to support companies in the ecosystem.
