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BlackRock Flags Quantum Computing as a Major Risk to Bitcoin ETFs

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In a rare move, BlackRock has officially flagged quantum computing as a potential threat to Bitcoin’s underlying cryptography. This risk disclosure was added on May 9 to the updated regulatory filing of its iShares Bitcoin ETF (IBIT), signaling growing institutional awareness of emerging technological threats.

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As digital assets grow in popularity, so do concerns about their long-term security. BlackRock’s latest update to its iShares Bitcoin ETF filing brings attention to quantum computing — a rapidly advancing technology that could one day break Bitcoin’s cryptographic protections. This marks a significant shift in how institutional players view emerging tech risks in the crypto space.

Quantum Computing May Undermine Bitcoin’s Security

BlackRock noted that if quantum computing advances significantly, it could weaken or break the cryptographic algorithms that secure information technology infrastructures globally — including those securing blockchain networks like Bitcoin. This marks the first time BlackRock has explicitly addressed this concern in its IBIT ETF filings. IBIT is currently the world’s largest spot Bitcoin ETF, with over $64 billion in net assets.

The statement underscores that while innovation fuels growth, it also introduces new vulnerabilities that could challenge the foundational security of digital assets.

Standard Legal Disclosure — But Not to Be Ignored

According to James Seyffart, an analyst at Bloomberg Intelligence, disclosures like this are legally required and are meant to list all conceivable risks — even those that are unlikely. Still, BlackRock’s decision to spotlight quantum computing suggests the issue is being taken seriously at the highest levels of institutional finance.

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The concern extends beyond active Bitcoin wallets. In February, Tether CEO Paolo Ardoino warned that quantum computers might one day unlock dormant or lost wallets — including those possibly belonging to Bitcoin creator Satoshi Nakamoto.

Bitcoin ETFs Still See Record Inflows Despite Quantum Risk

Despite the warning, Bitcoin ETFs continue to attract massive investor interest. Since their launch in January 2025, Bitcoin ETFs have pulled in over $41 billion in net inflows, with IBIT leading the charge.

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Analysts point out that lifetime net inflows are the most important performance metric for ETFs. Reaching new highs in such a short time indicates sustained investor confidence and a strong appetite for exposure to Bitcoin — regardless of long-term technological risks.

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