Quantum Threat? BlackRock Flags Future Risk In Bitcoin ETF Filing

Source Bitcoinist

BlackRock has added a warning about quantum computing to its iShares Bitcoin Trust (IBIT) filing. Based on reports, the asset manager sees a future risk that ultra-powerful machines might crack the math securing Bitcoin. This is the first time BlackRock has flagged this concern in its spot Bitcoin ETF paperwork.

BlackRock Flags Quantum Risk

According to the updated regulatory filing on May 9, BlackRock now lists “quantum computing” among possible threats to its Bitcoin ETF. The trust holds about $64 billion in net assets, making it the largest spot Bitcoin fund on record.

Company lawyers say that if quantum processors become strong enough, they could decrypt private keys and put wallet security in jeopardy. It’s a standard move in ETF filings to note every conceivable risk, even if it feels far-off.

Quantum Chips Raise Alarms

Based on reports, worries kicked up last December when Google unveiled Willow, a chip claimed to solve certain tasks in minutes that would take today’s supercomputers 10 septillion years. A few months later, Microsoft introduced Majorana 1 to tackle long-standing scaling hurdles. Those announcements set off alarm bells in the crypto world.

In theory, a quantum device running Shor’s algorithm could factor the large numbers behind Bitcoin’s elliptic-curve signatures. In practice, we’re still in the early, error-prone “NISQ” era, so real attacks remain at least years away.

Questions Over Lost Bitcoin

Tether’s CEO, Paolo Ardoino, surfaced another angle in February. He suggested that once quantum hackers can break old private keys, they might recover Bitcoin from the roughly 3.7 million coins considered lost forever.

Ardoino stressed that quantum machines are still distant from cracking 256-bit security, so no coins will reappear anytime soon. Crypto analyst Willy Woo jumped in, asking whether Google, a government agency, or a new startup would be first to seize those dormant assets. He figures the $350 billion in lost coins could spur fresh quantum investment if those keys ever become vulnerable.

ETF Inflows Hit Records

Meanwhile, Bitcoin ETFs have pulled in more cash than ever. Data from Farside Investors shows over $41 billion in net inflows since these funds launched in January. On May 8, weekly ETF inflows topped the previous all-time high of $40 billion.

Bloomberg Intelligence analyst Eric Balchunas called lifetime net flows “the hardest metric to grow,” yet ETFs raced to new highs despite recent market jitters. Investors appear focused on price moves today, not on the quantum questions of tomorrow.

In the months ahead, crypto developers and standards groups will work on “post-quantum” signature schemes. If they stay on schedule, Bitcoin networks could adopt new, quantum-resistant algorithms long before any real threat appears. For now, the market’s heavy inflows suggest that mainstream buyers aren’t yet spooked by next-generation computing power.

Featured image from Getty Images, chart from TradingView

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Jul 01, 2024
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
Ethereum (ETH) Underperforms All Top 5 Major Cryptos in Brutal 2025 DowntrendDespite signs of improving momentum, with RSI climbing and EMA lines hinting at a potential breakout, ETH continues to lag behind competitors like Solana in multiple metrics.
Author  Beincrypto
Apr 23, Wed
Despite signs of improving momentum, with RSI climbing and EMA lines hinting at a potential breakout, ETH continues to lag behind competitors like Solana in multiple metrics.
placeholder
Analysts Highlight 4 Reasons Why ETH Price Could Rebound Strongly in MayEthereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
Author  Beincrypto
May 07, Wed
Ethereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
placeholder
Gold Price Forecast: XAU/USD holds key 20-day EMA above $3,350, US-Iran tensions escalateGold price (XAU/USD) exhibits a sluggish performance above $3,350 during European trading hours on Monday.
Author  FXStreet
Jun 23, Mon
Gold price (XAU/USD) exhibits a sluggish performance above $3,350 during European trading hours on Monday.
goTop
quote