When the market falls into a "bear hug," major crypto players rush to the UAE to seek capital - the "New Wall Street" of the digital finance world

The cryptocurrency market is going through a difficult period. Bitcoin has lost momentum since October, with consecutive liquidations dealing heavy blows, and unexpectedly, the industry has fallen into an unforeseen “winter.” Amid US policy hurdles, industry leaders are beginning to turn their attention eastward – specifically to the UAE.

Last week, Abu Dhabi became the focal point of a series of special events. From the Middle East Bitcoin Conference to private night parties for “whales” at beach clubs, and champagne parties on ultra-luxury yachts – all with a common goal: to seek opportunities to connect with UAE sovereign wealth funds managing a total of $330 billion in assets. This is the time when crypto executives start to “hug” each other tightly, actively seeking any opportunity to engage with potential investors.

Capital Flows Shift as the US Uncertain

The reason why crypto capital is rushing to the UAE is very clear. While Trump’s crypto legislative program faces obstacles from some lawmakers, and the US stock market remains near historic highs, Bitcoin is “bleeding,” and this policy uncertainty has driven the industry to seek opportunities abroad. In contrast, the UAE not only shows interest but also actively welcomes.

Prominent figures in the industry have not hesitated to appear in the UAE. Michael Saylor from MicroStrategy stated that he continuously introduces digital asset accumulation plans to “hundreds of investors” in the Gulf region. The chairman of Metaplanet – a Japanese hotel business turned “Bitcoin whale” – also announced that they are raising capital through new stock programs. The preferred investment bank of the Trump family, (Dominari Holdings), is also heading there, along with South Korea’s Hanwha Group’s securities division, which announced Abu Dhabi as its regional hub.

UAE Focused on Building a Digital Finance Center

UAE’s interest in cryptocurrencies is not vague. Abu Dhabi has a clear strategy to establish itself as a global crypto hub. The local government provides early-stage investment, free office space, and preferential policies to attract crypto startups to establish businesses here.

Concrete evidence: A part of Mubadala fund revealed in November that they doubled their Bitcoin investment, building a position worth $518 million, and also hold an additional $567 million in Bitcoin through ETFs. Local venture capital firm Klumi Ventures is raising $100 million focused on cryptocurrencies from local investors. During Abu Dhabi Finance Week, leaders from top US crypto companies like Coinbase and Circle interacted with Wall Street figures including Ray Dalio (founder of Bridgewater) and Steve Schwarzman (CEO of Blackstone), along with representatives from major traditional banks like UBS and HSBC. Even the Abu Dhabi Crown Prince attended the opening ceremony, with senior Mubadala executives also present.

“Easy” Capital but Not Easy to Obtain

However, not everyone who comes to the UAE will be able to bring money back. Basil Al Askari, co-founder of the crypto brokerage MidChains in Abu Dhabi, pointed out that many foreign companies just arrive hoping to quickly close deals and then leave. This is a big mistake.

According to Samantha Bohbot, growth director of RockawayX: “They are not looking for people who just come to take money and leave. You need genuine benefits and perseverance.” RockawayX is a typical example – the company established its headquarters and an incubation center in the UAE, then was acquired by a business backed by Abu Dhabi investors. This is a “hug” with meaning – a long-term commitment, not overnight transactions.

Except for some special cases, convincing sovereign funds or large family offices usually requires years of relationship-building and a commitment to developing business locally. The UAE is not a place for those seeking “quick” capital – a lesson for anyone wanting to participate in the digital finance wave at the “New Wall Street” of the crypto world.