Quantum Computing Threat Casts Shadow Over Bitcoin ETFs, BlackRock Warns
Asset Manager Cites Emerging Tech as Potential Risk in $64B ETF Filing
BlackRock, the world’s largest asset manager, has introduced a stark new risk factor into its regulatory filing for the iShares Bitcoin Trust (IBIT): quantum computing. In a filing submitted on May 9, the company explicitly flagged the advancing capabilities of quantum technology as a potential threat to the cryptographic backbone of Bitcoin.
This marks the first time BlackRock has directly addressed this issue in connection with IBIT, which is currently the largest spot Bitcoin ETF with approximately $64 billion in net assets.
“If 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 those used for digital assets like Bitcoin,” the filing states.
Quantum Risk Enters the Regulatory Radar
Quantum computing, still in its infancy, promises exponentially faster processing speeds by leveraging the principles of quantum mechanics. But with that power comes a looming threat: the ability to break traditional cryptographic systems—including those that secure blockchain networks like Bitcoin.
While many in the tech community have debated the timeline for such breakthroughs, BlackRock’s inclusion of this risk in its ETF documentation is a noteworthy development—and signals increased regulatory and institutional awareness of technological vulnerabilities.
Bitcoin ETFs: Soaring Inflows, Surging Confidence
Despite the flagged risk, investor appetite for Bitcoin ETFs remains robust. Since the launch of spot Bitcoin ETFs in January, the sector has seen net inflows of over $41 billion, according to Farside Investors.
On May 8, Bitcoin ETFs saw record-breaking net inflows, pushing lifetime inflows to a new high of around $40 billion. This surge underscores investor confidence, even as long-term threats such as quantum computing loom in the background.
“Lifetime net flows is #1 most important metric to watch… very hard to grow, pure truth, no BS,” commented Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, on X (formerly Twitter).
Experts Urge Caution—but Context Matters
Industry analysts, however, urge a measured interpretation of the new risk disclosure.
“They are going to include every conceivable risk, even extremely unlikely ones,” said Bloomberg’s James Seyffart, noting that such disclosures are standard protocol in ETF documentation.
Still, the move comes on the heels of earlier comments by Tether CEO Paolo Ardoino, who warned in February that quantum breakthroughs could one day unlock dormant Bitcoin wallets, potentially altering supply dynamics.
“Any Bitcoin in lost wallets, including Satoshi’s (if not alive), will be hacked and put back in circulation,” Ardoino said.
Looking Ahead: A Race Against Time
BlackRock’s disclosure is not a cause for panic—but it does add a layer of urgency to the ongoing global effort to develop quantum-resistant cryptography. While quantum computing is not yet ready to crack Bitcoin’s defenses, institutional investors are now formally acknowledging the possibility—a move that could accelerate investment in protective technologies.
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