In a notable update to its regulatory filings, BlackRock has acknowledged that quantum computing poses a potential long-term threat to the security foundations underpinning Bitcoin and its spot exchange-traded fund (ETF).
The revised prospectus for BlackRock’s iShares Bitcoin Trust (IBIT), filed on May 9, includes a newly expanded section outlining how breakthroughs in quantum processing could one day challenge the cryptographic infrastructure of blockchain systems.
“Quantum computing isn’t something to panic over today but it is something the industry needs to prepare for in the future.The cryptographic foundations of digital assets must evolve alongside technological breakthroughs, and that means proactive innovation, not reactive fixes. Fortunately, the Bitcoin protocol is adaptable with consensus across nodes, it can be upgraded to resist future quantum threats.”
Hank Huang, CEO, Kronos Research
According to the filing, the asset manager warned that if quantum computing reaches a level of sophistication sufficient to crack today's encryption standards, it could compromise not only financial systems but also the decentralized protocols relied on by digital assets like Bitcoin.
While IBIT has previously noted general risks in its disclosures, this marks the first time BlackRock has specifically named quantum computing as a technological threat. As of now, the IBIT ETF leads the market in spot Bitcoin assets, managing approximately $64 billion, per BlackRock’s official site.
Quantum computing leverages quantum-mechanical phenomena to process data far faster than classical computers. While still in its early stages, the field has drawn attention from cybersecurity experts due to its theoretical ability to defeat current cryptographic protections.
James Seyffart of Bloomberg Intelligence emphasized that such disclosures are regulatory best practices, designed to give investors a full spectrum of risk even those that may seem far-fetched today.
“It’s expected for firms to detail any conceivable risks tied to a product or its underlying asset,” Seyffart explained on X. “This is routine and prudent risk management.”
Despite the cautionary note, investor enthusiasm remains strong. Bitcoin ETFs have pulled in more than $41 billion in net flows since their debut in January, according to data from Farside Investors.
On May 8, these inflows hit a record high, topping $40 billion. Bloomberg’s Eric Balchunas highlighted the milestone as a key signal of investor confidence, writing, “Lifetime net flows is the clearest signal of true adoption. It’s not easy to move that number.”
Back in February, Tether CEO Paolo Ardoino sparked debate by predicting that quantum breakthroughs could eventually unlock dormant Bitcoin wallets including those belonging to early miners or even Bitcoin’s anonymous creator.
“Eventually, coins long considered inaccessible could re-enter circulation,” Ardoino noted in a post on X.
While quantum computing remains a distant frontier, its potential impact on the crypto landscape is no longer being ignored by major financial players. BlackRock’s inclusion of it in official risk disclosures signals that the conversation is moving from theory to real-world consideration.
But is this a credible concern for today’s investors or a long-term “what if” that’s still decades away?
Do you believe quantum computing could pose a real threat to Bitcoin security in the near future, or is this more of a hypothetical risk for the next generation to worry about?
Share your thoughts with us, we’d love to hear where you stand.
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