Middle East’s Institutional Investors Gain Access to Bitcoin via Bahrain’s First BTC Fund

• Bahrain’s first Bitcoin fund offers institutional investors exposure to Bitcoin with downside protection, boosting crypto adoption in the GCC.
• MENA’s booming crypto market, driven by institutional activity, positions Bahrain as a key player in the region’s digital asset space.

Following the update shared by CNF, the Central Bank of Bahrain (CBB) is accelerating measures toward adopting new-age FinTech solutions. We learned that OpenNode will help set up the entire Bitcoin payments infrastructure in Bahrain. Recently, CBB has officially launched its 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 fund, developed in partnership with ARP Digital, will allow investors to gain exposure to Bitcoin with capped gains and full protection against downside losses.

Abdullah Kanoo, co-founder and co-CEO of ARP Digital, highlighted the potential of this offering for those looking for a calculated way to invest in digital assets. In a recent post, Abdullah Kanoo stated,

Our collaboration with CBB is poised to be a game-changer in the regional market. By leveraging our expertise in digital assets and CBB’s extensive reach in the financial sector, we have created a product that introduces Bitcoin exposure within a highly secure framework. This structured investment opens new doors for investors seeking a calculated approach to digital assets.

He further explained that by combining ARP Digital’s expertise in digital assets with CBB’s influence in the financial sector, the fund provides a secure avenue for institutions to engage with Bitcoin.

Bahrain’s Growing Crypto Ecosystem and Regional Regulatory Developments

Bahrain has been working to establish itself as a key player in the digital assets space, thanks to its efforts to create a supportive environment for both innovation and consumer protection. Major companies like Crypto.com, Binance, and BitOasis have already secured licenses to operate in the country, adding to Bahrain’s growing reputation as a regional crypto hub.

In the wider Middle East and North Africa (MENA) region, cryptocurrency activity is booming. According to a report by Chainalysis, MENA accounted for 7.5% of global crypto transaction volume between July 2023 and June 2024, reaching $338.7 billion.

The majority of these transactions came from institutional investors, primarily through centralized exchanges. However, decentralized platforms are gaining popularity, especially in the UAE and Saudi Arabia, signaling further growth in the region’s crypto market.

With Bahrain’s progressive approach to regulation and increasing interest in digital assets across the region, the launch of CBB’s Bitcoin fund marks a significant milestone for institutional crypto adoption in the Gulf. Today, according to CoinMarketCap, Bitcoin (BTC) is trading at $62,622, having decreased by 1.48% in the past day and 2.09% in the past week.