The National Bank of Bahrain (NBB) has introduced the first Bitcoin investment fund targeted at institutional investors in the Gulf Cooperation Council (GCC) of the Middle East, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.
The fund was developed in partnership with digital asset company ARP Digital and offers investors exposure to Bitcoin with maximum potential gains and full protection against losses.
According to local media, Abdullah Kanu, co-founder and co-chief executive officer of ARP Digital, said: By leveraging our expertise in digital assets and NBB’s extensive influence in the financial sector, we have created a product that introduces Bitcoin exposure within a highly secure framework. ”
Bahrain is working hard to attract digital asset businesses, creating a cryptocurrency-friendly environment with clear regulations. This has led to companies such as Binance, Crypto.com, and BitOasis to set up operations in the country.
The UAE is also making progress in regulating cryptocurrencies. In 2023, Dubai’s Virtual Assets Regulatory Authority (VARA) announced a comprehensive set of rules for companies dealing with cryptocurrencies, making it easier for Web3 companies to operate in the region.
According to Chainalysis, $338.7 billion in crypto transactions took place in the Middle East and North Africa (MENA) region from July 2023 to June 2024.
Most of these trades come from institutional investors, with centralized exchanges dominating, but decentralized platforms are gaining traction, particularly in the UAE and Saudi Arabia.
This new fund from NBB offers a promising avenue for regional investors to safely engage with Bitcoin in a well-regulated environment.
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