[NEWS] National Bank of Bahrain launches Bitcoin investment fund

National Bank of Bahrain (NBB) Launches First Bitcoin-Linked Fund in the GCC in Partnership with APR Digital.

The National Bank of Bahrain (NBB) has partnered with APR Digital to launch the GCC’s (Gulf Cooperation Council) first Bitcoin (BTC)-linked fund.

According to an IBS information report, the fund is designed to offer accredited investors exposure to Bitcoin, the leading cryptocurrency, while providing a hedge against the depreciation of fiat currencies.

Bahrain is currently one of the nations that holds Bitcoin, and this move is expected to significantly boost the adoption of Bitcoin within the country.

With this launch, NBB has introduced the first Bitcoin investment fund in the GCC region, which includes countries such as Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

Commenting on the development, NBB’s Group CEO of Markets and Customer Solutions, Hisham Al Kurdi, stated:

"We are proud to introduce this custom-structured investment, which combines the appeal of digital asset exposure with the security of capital protection. This investment product emphasizes our focus on providing our asset management clients with innovative and secure means of diversifying their portfolios in an evolving investment environment. It also demonstrates NBB’s continued leadership in financial innovation within the region."

The launch of this Bitcoin investment fund aligns with NBB's strategy to expand services for high-net-worth clients, particularly in investment services with significant growth potential.

The bank believes that the Bitcoin market could grow to become one of the world’s most valuable assets.

Additionally, the success of Bitcoin spot ETFs in the U.S. and Europe has influenced the establishment of this Bitcoin investment fund in Bahrain. By launching a Bitcoin fund, NBB aims to keep pace with the existing Bitcoin spot ETFs.

In any case, NBB’s move to introduce a Bitcoin investment fund will undoubtedly accelerate the adoption of Bitcoin in the country.

5th Largest Bitcoin Holder in the World

According to Bitcoin treasury data, Bahrain holds 13,166 BTC, worth approximately $1.24 billion, making it the fifth-largest Bitcoin-holding nation in the world.

Unlike the U.S., which holds Bitcoin due to seizures from criminals, Bahrain has accumulated Bitcoin as part of its investment strategy.

The Central Bank of Bahrain (CBB) has also introduced a clear legal framework to promote the adoption of digital assets like Bitcoin in the country.

Recently, the CBB granted a payment service license to the cryptocurrency exchange Crypto.com, allowing Crypto.com to operate alongside the top crypto exchanges in Bahrain and offer crypto trading services to Bahraini users.

Reference: IBS Intelligence Report
Image: Shutterstock

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