Middle Eastern oil-producing countries' oil money reconfigures Bitcoin market liquidity… Large ETF inflows in Abu Dhabi

Source: TokenPost Original Title: Middle Eastern Oil-Producing Countries’ Oil Money Reshapes Bitcoin($BTC) Market Liquidity… Large ETF Inflows in Abu Dhabi Original Link: Oil-related capital from Middle Eastern oil-producing countries is rapidly emerging as a key liquidity provider in the Bitcoin(BTC) market by 2025, creating a new trend in the cryptocurrency market. Centered around Abu Dhabi, this capital is flowing into the market through sovereign wealth funds, family offices, and private financial networks via US spot ETFs, fundamentally restructuring the market architecture of Bitcoin.

In the past, Bitcoin surges were mainly triggered by individual traders relying on leverage and speculation in regulatory blind spots, but by 2025, a completely different picture is emerging. The current inflow of funds is large-scale, long-term, and conducted through institutional channels based on major financial infrastructure, making its impact on the market much more structural.

Among the cities attracting attention in this trend is Abu Dhabi. The Abu Dhabi Global Market (ADGM) has emerged as a regulatory hub where global asset management firms and cryptocurrency specialized brokerages gather, serving as a conduit for abundant oil-related capital to flow into Bitcoin investments and infrastructure. For example, Abu Dhabi Investment Authority (ADIC) expanded its holdings of Bitcoin trusts from 2.4 million to nearly 8 million shares during Q3 2025, which was worth approximately $518.77 million (~7,661 billion KRW) at that time.

Oil-producing country investors are interested in Bitcoin for various reasons. From a sovereign capital perspective, Bitcoin is becoming a strategic asset for long-term portfolio diversification and intergenerational wealth transfer. Simultaneously, efforts are underway to enhance overall market stability and liquidity by building cryptocurrency infrastructure within the region. The increasing demand from young high-net-worth individuals further supports these long-term strategies.

This institutional inflow not only leads to short-term price increases but also narrows the ‘bid/ask spread’ of Bitcoin, increasing trading volume and order depth, thereby strengthening overall market liquidity. Additionally, developments in hedging linked to spot ETFs, derivatives management, and prime brokerage services are making Bitcoin’s market-making environment more stable.

The institutional framework across the UAE also plays a crucial role. The federal regulatory system, along with autonomous and specialized financial free zones like ADGM, provides a foundation for sensitive global liquidity to access cryptocurrencies through this region. In fact, some major exchanges have obtained global licenses under the ADGM framework.

However, such large capital inflows also reveal the dual nature of liquidity. The current trend can easily reverse. On November 18, 2025, a major asset management firm’s Bitcoin trust experienced a record single-day net outflow of $523 million (~772.2 billion KRW), illustrating a rapid outflow within just one day. This was triggered by market corrections, profit-taking, weakening investor sentiment, and a shift towards gold.

Ultimately, easier access to funds does not guarantee continuous net inflows. Liquidity is bidirectional; the same infrastructure enables both large inflows and outflows. Moreover, policy and regulatory changes by governments around the world can act as variables that either accelerate or suppress these flows.