On October 8, 2024, Bahrain's National Bank (NBB) announced the launch of the Middle East's first Bitcoin investment fund, aimed at institutional investors in the Gulf Cooperation Council (GCC), which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. This initiative is expected to attract significant capital from the region's oil wealth.
The fund, developed in partnership with ARP Digital, offers a structured investment product providing exposure to Bitcoin, currently priced at $63,332.71, with 100% loss protection and capped gains. Abdullah Kanoo, co-founder of ARP Digital, emphasized that this investment vehicle opens new opportunities for a secure approach to digital assets.
Bahrain is positioning itself as a crypto-friendly environment, recently granting licenses to major exchanges like Binance and Crypto.com. The Middle East and North Africa (MENA) region accounted for 7.5% of global cryptocurrency transactions, totaling $338.7 billion from July 2023 to June 2024, with institutional investors driving the majority of activity.
The introduction of this Bitcoin fund may further solidify Bitcoin's status among institutional investors in the region, potentially leading to increased market stability and growth.