Bitcoin News Today: Abu Dhabi Treats Bitcoin as Digital Gold Amid Quantum Fears and Market Turbulence

Abu Dhabi's sovereign wealth funds have significantly increased their exposure to Bitcoin, betting big on the cryptocurrency despite recent market turbulence. The Abu Dhabi Investment Council (ADIC) tripled its stake in BlackRock's iShares Bitcoin Trust during the third quarter of 2025, holding nearly 8 million shares valued at approximately $518 million as of September 30. This move came just weeks before Bitcoin's price plummeted below $92,000 in early October, triggering a wave of redemptions from U.S. Bitcoin ETFs. ADIC's strategy positions Bitcoin as a long-term store of value akin to gold, part of a broader diversification effort by the emirate's $1.7 trillion wealth complex.

The timing of ADIC's investment has drawn scrutiny as Bitcoin's bear market intensifies. By November, U.S. Bitcoin ETFs had lost $3.1 billion in assets, with IBIT alone shedding $523 million in a single day after the cryptocurrency dropped below a critical support level. The fund's spokesperson emphasized a "patient" approach, stating Bitcoin's role as a strategic asset aligns with traditional reserves. Meanwhile, Abu Dhabi's Mubadala Investment Company has further cemented the emirate's crypto ambitions, having previously acquired a $2 billion stake in Binance via a Trump-linked stablecoin.

The quantum computing threat looms over Bitcoin's future, sparking debate among experts. Venture capitalist Chamath Palihapitiya warned that quantum computers could break Bitcoin's cryptographic security within five years, citing advancements by firms like Google and IBM. Conversely, Bitcoin pioneer Adam Back argued that quantum risks remain decades away, noting post-quantum cryptography (PQC) solutions like NIST's SLH-DSA could preemptively secure the network. Ray Dalio echoed concerns, stating Bitcoin's 1% allocation in his portfolio reflects its speculative nature and potential vulnerability.

Regulatory and market dynamics further complicate Bitcoin's outlook. The Czech Republic's central bank recently announced its first crypto purchase, while El Salvador added $100 million to its Bitcoin reserves. Institutional adoption continues, with Coinbase acquiring Solana-based trading platform Vector to expand on-chain markets, and KuCoin integrating Brazil's Pix payments system to tap into Latin America's 26 million crypto users.

Despite short-term volatility, long-term investors remain bullish. Abu Dhabi's ADIC and Mubadala are part of a growing trend among sovereign funds and institutions treating Bitcoin as a strategic asset. However, the quantum computing debate and regulatory uncertainty underscore the need for proactive measures, including PQC adoption and clearer frameworks for crypto integration.