BlackRock has added a new warning to its iShares Bitcoin Trust (IBIT) documents: powerful quantum computers could one day threaten Bitcoin. This is the first time BlackRock has flagged this risk in its filings for a Bitcoin spot ETF.
What’s the Worry?
In a filing updated on May 9, BlackRock listed “quantum computing” as a possible risk to its Bitcoin ETF. This ETF is huge, holding about $64 billion, making it the largest spot Bitcoin fund ever.
Lawyers said that if quantum computers become powerful enough, they could crack the math that protects Bitcoin’s private keys, which keep wallets secure. It’s standard practice to mention all possible risks, even if they seem far off in the future.
Why Quantum Computers Matter
Quantum computers have been making headlines lately. Last December, Google said its new chip, called Willow, could solve certain problems in minutes — problems that would take today’s supercomputers 10 septillion (that’s 10 followed by 24 zeros) years. A few months later, Microsoft unveiled Majorana 1, a chip that tackles some long-standing issues in quantum computing.
In theory, quantum computers could use something called Shor’s algorithm to break the math behind Bitcoin’s security. But in reality, experts say these computers are still in the early stages — today’s quantum machines are error-prone and not close to being a real threat yet.
What About Lost Bitcoin?
Back in February, Tether’s CEO, Paolo Ardoino, shared another angle. He pointed out that quantum computers might one day help recover some of the 3.7 million Bitcoins thought to be lost forever. That’s about $350 billion worth of Bitcoin!
Crypto analyst Willy Woo said if quantum computers ever do get that powerful, it could lead to a scramble to recover those lost coins. But for now, the risk is far off. Today’s quantum computers can’t break 256-bit encryption — the math that keeps Bitcoin safe.
Bitcoin ETFs Are Still Booming
Even with these quantum concerns, Bitcoin ETFs have been smashing records. Data from Farside Investors shows that since these ETFs launched in January, they’ve pulled in over $41 billion in net inflows. On May 8 alone, they set a new record for weekly inflows: over $40 billion.
Bloomberg’s Eric Balchunas called these inflows “the hardest metric to grow.” But investors seem more focused on today’s prices than on the far-off quantum future.
Looking Ahead
In the coming months, crypto developers and standards groups plan to work on “post-quantum” security — algorithms that would keep Bitcoin safe from future quantum computers. This echoes past moments in crypto history, like when the industry scrambled to fix major bugs like the Heartbleed vulnerability in 2014, or the DAO hack in 2016.
As long as these updates stay on track, Bitcoin and other blockchains should have strong protection long before quantum computers are ready to attack. For now, the big money keeps flowing in, suggesting that most investors aren’t losing sleep over quantum computers just yet.
