The National Bank of Bahrain (NBB) has made waves by introducing its first Bitcoin investment fund, targeting institutional investors across the Gulf Cooperation Council (GCC). This initiative covers Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, marking a significant move towards embracing digital assets in the region.

Developed in partnership with ARP Digital, the fund promises Bitcoin gains with a capped threshold, ensuring investors won't lose more than their initial investment. Abdullah Kanoo, co-founder of ARP Digital, highlighted the fund’s appeal, calling it a "calculated approach" to Bitcoin, offering security and potential rewards.

Bahrain has been actively working to create a crypto-friendly environment, attracting major players like Binance and Crypto.com. The country’s clear regulatory framework has positioned it as a hub for digital asset businesses.

Meanwhile, the UAE has also advanced its crypto regulations. In 2023, Dubai’s Virtual Asset Regulatory Authority (VARA) issued comprehensive guidelines for Web3 companies, solidifying the region’s growing influence in the digital asset space.

According to Chainalysis, the Middle East and North Africa (MENA) region accounted for 7.5% of global crypto transactions between July 2023 and June 2024, totaling a staggering $338.7 billion. The majority of these transactions were driven by institutional investors, showcasing the region’s increasing adoption of cryptocurrencies.

This fund launch marks a new chapter in the Middle East’s digital asset journey, opening doors for investors seeking exposure to Bitcoin within a secure and regulated framework.

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