National Bank of Bahrain Launches Bitcoin Investment Fund Targeting Institutional Investors in the GCC Region

The National Bank of Bahrain has launched its first Bitcoin investment fund, aimed at institutional investors within the Gulf Cooperation Council (GCC) region.

Bahrain's National Bank has launched its first Bitcoin investment fund, targeting institutional investors in the Gulf Cooperation Council (GCC) region.

This fund was reportedly created in collaboration with ARP Digital, a company specializing in digital assets.

The investment vehicle aims to provide investors with exposure to Bitcoin, limiting gains to a predetermined cap and offering protection against losses.

Abdullah Kanoo, co-founder and co-CEO of ARP Digital, described the investment product as a strategic tool for investors to enter the digital asset space.

He emphasized the synergy between ARP Digital's expertise and the National Bank of Bahrain's financial presence in offering a secure approach to Bitcoin investment.

Bahrain has been actively engaged in attracting digital asset companies, seeking to establish a balanced ecosystem for Bitcoin, crypto, and fintech innovation.

This includes implementing clear regulations that cater to both investor protection and commercial growth, according to Eric Anziani, chief operating officer at Crypto.com.

In September, Crypto.com secured a license from Bahrain's central bank to operate in the country, joining other exchanges like Binance, which commenced local operations in March 2022, and BitOasis.

Concurrently, the United Arab Emirates has also undertaken initiatives to regulate digital assets.

In 2023, Dubai's Virtual Asset Regulatory Authority (VARA) issued comprehensive guidelines for Web3 companies.

These comprise four mandatory rulebooks, seven activity-specific rulebooks, and one dedicated to the issuance of virtual assets.

A report by Chainalysis reveals that the Middle East and North Africa (MENA) region contributed 7.5% to the global Bitcoin and cryptocurrency transaction volume between July 2023 and June 2024, amounting to $338.7 billion.

A substantial portion of this volume was attributed to institutional and professional investors.

Chainalysis also highlights that the majority of Bitcoin and cryptocurrency transactions in the MENA region are processed through centralized exchanges.

Despite this, there is significant interest in decentralized platforms, especially in the UAE and Saudi Arabia.

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