The cryptocurrency space continues to be adopted by traditional financial institutions.
The CEO and Managing Director of Mubadala Investment Company, one of the sovereign wealth funds of the United Arab Emirates, has announced that the fund is no longer skeptical about cryptocurrencies and is now investing in the ecosystem.
Khaldoon Al Mubarak told CNBC in a recent interview, that the cryptocurrency space has experienced massive growth in the last two years. For this reason, the Fund is trying to increase its investments in the space. He said:
“I think it (crypto) is real. This is a business that was worth $200 billion two years ago and is worth $2.5 trillion today and continues to grow. Although many people are skeptical, I do not fall into this category.“
Mubadala Investment Company currently manages assets of more than USD234 billion, making it one of the largest wealth funds in the United Arab Emirates and worldwide.
The CEO explained that the fund, headquartered in Abu Dhabi, is now actively investing in cryptocurrencies. Their investments went beyond cryptos, as they also invest in blockchain companies and other crypto-related businesses.
The cryptocurrency space has attracted numerous traditional financial institutions since the beginning of the year. The growth of the market has convinced many institutional investors to now consider Bitcoin and other cryptocurrencies as an inflation hedge.
This latest development occurred even though Bitcoin is currently struggling under the $50,000 mark. Bitcoin hit an all-time high of $69,044 last month, but has underperformed since then. At the time of writing, Bitcoin is trading around the $49,000 mark per coin.
Bitcoin has lost almost 30% of its value since the all-time high. The declining performance has spread to other leading cryptocurrencies, with Ethereum, Binance Coin, Solana, Cardano and others all having problems.
Despite the recent struggles, market experts are optimistic that the medium and long-term prospects for Bitcoin and other cryptocurrencies remain positive.