The National Bank of Bahrain (NBB) has launched its inaugural Bitcoin investment fund, targeting institutional investors across the Gulf Cooperation Council (GCC), which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.
This marks a significant milestone as the region continues to embrace digital assets.
Partnering with ARP Digital, a digital asset specialist, NBB’s fund offers a strategic approach to Bitcoin investments. The investment vehicle provides exposure to Bitcoin’s growth while capping gains at a set limit.
However, it comes with a significant advantage—100% downside protection, shielding investors from potential losses.
Also Read: UAE Approves First Onshore Digital Asset Insurance
Abdullah Kanoo, co-founder and co-CEO of ARP Digital, highlighted the importance of this calculated investment approach:
Our collaboration with NBB is poised to be a game-changer in the regional market. 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.”
Bahrain’s growing appeal for digital asset businesses is a testament to its proactive stance in fostering a crypto-friendly and innovative ecosystem. By implementing regulations that strike a balance between consumer protection and business growth, Bahrain is positioning itself as a hub for crypto ventures.
This regulatory clarity attracted major players like Crypto.com, which obtained a license from Bahrain’s central bank in September. Crypto exchanges Binance and BitOasis have also established operations, with Binance having operated locally since March 2022.
The broader region’s regulatory landscape is also evolving. In 2023, the UAE’s Virtual Asset Regulatory Authority (VARA) set out comprehensive rules for Web3 companies in Dubai.
These include four mandatory rulebooks, seven for specific activities of virtual asset service providers (VASPs), and one specifically for issuing virtual assets, ensuring a robust framework for crypto operations.
According to a Chainalysis report, the Middle East and North Africa (MENA) region accounted for 7.5% of global cryptocurrency transactions between July 2023 and June 2024, with a staggering $338.7 billion in volume.
Notably, institutional and professional investors drove the bulk of these transactions, indicating the increasing interest from large-scale players. Centralized exchanges dominate on-chain traffic, but decentralized platforms are gaining traction, particularly in the UAE and Saudi Arabia, reflecting the region’s growing interest in diverse crypto offerings.
