Bahrain’s National Bank Introduces Pioneering Bitcoin Investment Fund
In a significant move for the Gulf Cooperation Council (GCC) region’s cryptocurrency landscape, the National Bank of Bahrain (NBB) has launched the area’s first Bitcoin-linked structured investment product. Developed in partnership with digital asset firm ARP Digital, this innovative fund is specifically designed for accredited institutional investors across the GCC countries, which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
The investment vehicle offers a unique proposition: exposure to Bitcoin’s potential gains, capped at a predefined threshold, while providing 100% capital protection against downside risks. This structure aims to appeal to risk-averse investors who are interested in cryptocurrency exposure but wary of its notorious volatility.
Hisham AlKurdi, Group Chief Executive – Markets & Client Solutions at NBB, emphasized the product’s innovative nature, stating, “This bespoke structured investment blends the appeal of digital asset exposure with the security of capital protection. It underscores our focus on offering wealth management clients innovative and secure avenues to diversify their portfolios in an evolving investment landscape.”
The launch aligns with Bahrain’s broader efforts to position itself as a hub for financial innovation in the Middle East. The country has been proactively creating a crypto-friendly ecosystem, implementing clear regulations that balance consumer protection with commercial interests. This approach has already attracted major players in the cryptocurrency space, including Binance, Crypto.com, and BitOasis, all of which have obtained licenses to operate in the country.
Abdulla Kanoo, Co-Founder and Co-Chief Executive Officer at ARP Digital, highlighted the potential impact of this collaboration, saying, “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.”
The introduction of this fund comes at a time when the Middle East and North Africa (MENA) region is experiencing significant growth in cryptocurrency adoption.
While centralized exchanges dominate the region’s cryptocurrency landscape, there’s growing interest in decentralized platforms, particularly in the UAE and Saudi Arabia. This trend, coupled with the launch of NBB’s Bitcoin fund, suggests a maturing market that’s increasingly open to sophisticated crypto-based financial products.
