The National Bank of Bahrain (NBB) has launched its first Bitcoin investment fund, making it the first of its kind in the Gulf Cooperation Council (GCC) region. This groundbreaking initiative is designed specifically for institutional investors across Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). The fund, developed in partnership with ARP Digital, offers exposure to Bitcoin, with a capital-protection feature that provides 100% downside loss protection while capping gains at a predefined threshold.
The National Bank of Bahrain has launched its first #Bitcoin investment product. pic.twitter.com/2IPZlvsx0I
— TFTC (@TFTC21) October 7, 2024
"This structured investment opens new doors for investors seeking a calculated approach to digital assets," said Abdullah Kanoo, co-founder and co-CEO of ARP Digital. "By leveraging our expertise in digital assets and NBB’s extensive reach in the financial sector, we have created a product that introduces Bitcoin exposure within a highly secure framework."
The launch highlights Bahrain’s commitment to creating a Bitcoin-friendly environment and fostering innovation. The country has already established itself as a hub for Bitcoin in the region, ranking fifth globally in Bitcoin holdings, with approximately 13,166 BTC valued at $844 million.
Bahrain’s proactive stance on Bitcoin adoption is mirrored by other regulatory developments in the UAE. In 2023, Dubai’s Virtual Asset Regulatory Authority (VARA) introduced comprehensive guidelines for virtual asset service providers (VASPs) to support the safe and secure growth of the digital asset ecosystem.
