BlackRock, the world’s largest asset manager, has flagged quantum computing as a potential risk for Bitcoin and other digital assets in a recent update to its regulatory filing for the iShares Bitcoin ETF (IBIT).
The update, submitted on May 9, highlights the emerging threat quantum computing could pose to the cryptographic security of Bitcoin’s blockchain and other digital asset networks.
In the filing, BlackRock warned that if quantum computing advances significantly, it could render many of the cryptographic algorithms currently securing digital assets, including Bitcoin, ineffective. The statement reads:
“[I]f quantum computing technology is able to advance […] it could potentially undermine the viability of many of the cryptographic algorithms used across the world’s information technology infrastructure, including the cryptographic algorithms used for digital assets like bitcoin.”
This is the first time BlackRock has specifically mentioned quantum computing as a risk to its Bitcoin ETF. The IBIT ETF, which is the largest spot Bitcoin ETF with approximately $64 billion in net assets, could be affected by such technological developments, according to the filing.
Quantum computing, which leverages the principles of quantum mechanics to enhance computational power, has the potential to break the encryption techniques used in blockchain technology. While the field is still in its early stages, experts caution that quantum advancements could eventually compromise the security of Bitcoin and other cryptocurrencies.
James Seyffart, a Bloomberg Intelligence analyst, noted that such risk disclosures are standard practice. These filings are meant to cover all possible risks, even those that seem highly unlikely at present. BlackRock’s move to flag quantum computing risks aligns with the necessity of providing thorough warnings to investors.
Bitcoin ETFs have seen significant growth since their launch in early 2025, with net inflows exceeding $41 billion. As of May 8, Bitcoin ETF inflows have surpassed all-time highs, a sign of growing interest in digital asset investments.
While the development of quantum computing poses a theoretical risk, it also sparks discussions about the future of Bitcoin’s security. In February, Tether CEO Paolo Ardoino predicted that quantum computing could eventually allow hackers to access dormant Bitcoin wallets and “bring lost Bitcoin back into circulation,” including coins that may have belonged to Bitcoin’s creator, Satoshi Nakamoto.
The conversation around quantum computing’s potential to disrupt digital asset security will continue to evolve as both the technology and regulatory landscape progress.
Leave a comment