The National Bank of Bahrain (NBB) has introduced its first Bitcoin investment fund, targeting institutional investors in the Middle East’s Gulf Cooperation Council (GCC). The GCC includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). This move is part of a growing interest in cryptocurrency in the region.
Partnership with ARP Digital
The new Bitcoin fund is developed in partnership with ARP Digital, a digital asset firm. The investment will offer institutional investors a way to gain exposure to Bitcoin with a safety net. The fund caps Bitcoin gains at a certain limit while protecting investors from any losses.
Abdullah Kanoo, co-founder and co-CEO of ARP Digital, stated, “This structured investment offers a safe and calculated way for investors to enter the digital asset space. By using our expertise and NBB’s wide network, we have built a product that offers Bitcoin exposure in a secure manner.”
Bahrain’s Growing Crypto Market
Bahrain has been making efforts to attract more digital asset businesses. The country is building a crypto and fintech-friendly environment with clear regulations. These rules balance consumer protection with encouraging new businesses. According to Eric Anziani, COO of Crypto.com, these efforts are helping create a more innovation-friendly market.
Crypto.com received a licence from Bahrain’s central bank in September. It joins other exchanges like Binance, which has operated locally since March 2022, and BitOasis, which is also active in the region.
UAE’s Regulatory Progress
In the UAE, major steps were made in regulating cryptocurrency. In 2023, Dubai’s Virtual Asset Regulatory Authority (VARA) released detailed rules for Web3 companies. These guidelines include several rulebooks that explain how Virtual Asset Service Providers (VASPs) should operate and issue virtual assets.
A recent report shows that the Middle East and North Africa (MENA) region accounted for 7.5% of global cryptocurrency transaction volume between July 2023 and June 2024. This totaled $338.7 billion in transactions, mostly driven by institutional and professional investors.
The report also shows that while centralised exchanges are dominant, there is growing interest in decentralised platforms, especially in the UAE and Saudi Arabia.
