Abu Dhabi Fund Tripled Bitcoin Bet in Months Before Crypto Crash

The Abu Dhabi Investment Council significantly increased its investment in a Bitcoin exchange-traded fund, tripling its position during the third quarter. This move occurred shortly before a severe downturn in the cryptocurrency market, as reported in a regulatory filing. The council's holdings in BlackRock Inc.'s iShares Bitcoin Trust ETF reached nearly 8 million shares by September 30.

The anticipated Bitcoin bounce did not materialize, leaving leveraged traders in a precarious position. The cryptocurrency has seen a significant decline, falling nearly 30% from its peak earlier in 2025, raising concerns about the sustainability of high-risk investments in the crypto market.

Théau Peronnin, CEO of Nvidia's quantum partner, has indicated that quantum computers may soon possess the capability to crack Bitcoin's encryption, potentially occurring after 2030. He emphasized that the threshold for this technological advancement is approaching each year.

Investors withdrew over half a billion dollars from BlackRock Inc.'s iShares Bitcoin Trust, marking the largest single-day outflow since the fund's inception. This significant withdrawal reflects a growing lack of confidence in the digital assets market, which has been under pressure from recent declines in Bitcoin and other cryptocurrencies.

Bitcoin's recent decline underscores the increasing prevalence of high-risk investments promoted by both Wall Street and cryptocurrency firms. The cryptocurrency has fallen significantly, raising concerns about the sustainability of such speculative trading practices. This downturn reflects a broader trend of diminishing confidence in the crypto market, as investors grapple with volatility and potential losses.

Bitcoin has experienced a significant decline, falling nearly 30% from its peak in 2025, trailing behind traditional assets such as tech stocks and T-bills. Once viewed as a high-growth investment and a hedge against inflation, the cryptocurrency now risks finishing the year in negative territory without fulfilling its intended roles. Jaime Leverton, CEO of ReserveOne, discussed these developments on Bloomberg Crypto, highlighting the ongoing selloff in digital assets.

Bitcoin has rebounded after falling below $90,000, marking a seven-month low. The cryptocurrency experienced significant volatility, reflecting broader trends in the financial markets. This rebound indicates a potential recovery phase for Bitcoin, which had seen a substantial decline in recent weeks.

Wall Street's attempt to capitalize on the crypto boom through the launch of various exchange-traded funds (ETFs) appears to be poorly timed. All 11 recently launched ETFs, primarily linked to smaller cryptocurrencies, are currently experiencing losses. This downturn is part of a larger selloff that has seen Bitcoin's market value decline by approximately $600 billion since its peak in October.