In a notable disclosure, BlackRock has updated its iShares Bitcoin Trust (IBIT) filing to include quantum computing as a potential long-term threat to Bitcoin’s cryptographic security. Submitted in early May 2025, this amendment highlights concerns that advancements in quantum technology could compromise the encryption foundations of Bitcoin and other digital assets.
This marks the first time the world’s largest asset manager has explicitly referenced quantum risk in a Bitcoin-related document, signaling heightened attention from institutional players on future threats to cryptographic systems.
While ETF risk disclosures are typically comprehensive, the inclusion of quantum computing—alongside more conventional risks like market volatility and regulation—indicates that major financial entities now view this as a credible, longer-term challenge.
For investors, this serves as a reminder that Bitcoin is not impervious to technological evolution and that institutions are proactively evaluating such risks in their strategic planning.
The underlying message is clear: the industry must begin preparations for a post-quantum era today.
Understanding the Quantum Threat to Bitcoin
Quantum computers operate fundamentally differently from classical computers. By leveraging quantum bits, or qubits, they can process vast numbers of calculations simultaneously. This makes them exceptionally powerful at solving certain types of problems—particularly those involving cryptography.
Bitcoin relies on two primary cryptographic algorithms for security: SHA-256 for hashing and ECDSA (Elliptic Curve Digital Signature Algorithm) for digital signatures. These ensure that transactions are secure and that only the holder of a private key can authorize transfers.
The concern is that a sufficiently advanced quantum computer could theoretically reverse-engineer a private key from a public address. This would be especially feasible during the brief period when a transaction is broadcast but not yet confirmed. If achieved, it could allow malicious actors to intercept and steal funds.
However, experts widely agree that quantum machines capable of such feats remain at least a decade away. Current quantum technology lacks the scale, stability, and error-correction capabilities needed to break Bitcoin’s encryption.
That said, an estimated 25% of Bitcoin is stored in older wallet formats that may be more susceptible to quantum attacks. This has prompted the crypto community to actively explore quantum-resistant solutions.
Is Bitcoin Prepared for Quantum Computing?
Although quantum computing is not an immediate danger, the crypto industry is not standing still. Research and development around quantum-resistant cryptography are well underway.
Current Initiatives in the Bitcoin Ecosystem
Adapting a decentralized network like Bitcoin is a complex process that requires community consensus, rigorous testing, and seamless implementation. One proposal gaining traction is the Quantum-Resistant Address Migration Protocol (QRAMP). This protocol would encourage users to migrate funds from older wallets to new, quantum-secure addresses using advanced algorithms. Implementing such a upgrade would require a hard fork—a significant but necessary evolution.
Early Adopters in the Blockchain Space
Some blockchain projects have already integrated quantum-resistant features. For example, Algorand uses Falcon, a post-quantum digital signature standard approved by the U.S. National Institute of Standards and Technology (NIST). This means Algorand’s transactions are already secured against potential quantum threats.
Another project, the Quantum Resistant Ledger (QRL), was built from the ground up with quantum safety in mind. It uses the XMSS signature scheme, which is based on hash functions rather than elliptic-curve cryptography.
Challenges in Implementation
Transitioning to quantum-resistant cryptography involves several hurdles. New algorithms often demand more computational resources, which could affect network performance and scalability. Moreover, achieving ecosystem-wide coordination among miners, exchanges, wallet providers, and users is a monumental task.
There is also a strategic balance to maintain: acting too early might mean relying on untested technology, while delaying too long increases vulnerability. Most experts agree that the industry has a 10–20 year window to prepare—but early action is crucial.
The Road to a Quantum-Secure Future
The discussion around quantum computing and Bitcoin underscores the importance of preparedness. Proactive measures are essential to safeguarding digital assets against tomorrow’s threats.
For developers, the focus is on integrating quantum-resistant algorithms into existing protocols. Some are testing hybrid models that combine classical and post-quantum cryptography, ensuring a smoother transition when the time comes.
Businesses such as exchanges and wallet providers must not only upgrade their infrastructure but also educate users on upcoming changes. Simplifying the user experience during migration will be critical to maintaining trust and participation.
From a regulatory standpoint, clear guidelines and standards are emerging. NIST finalized several post-quantum cryptographic standards in 2024, providing a foundation for the industry. What’s needed now are policy frameworks that encourage adoption without stifling innovation.
👉 Explore quantum-resistant security strategies
Government agencies have been aware of the quantum threat for years. The U.S. government initiated research into post-quantum cryptography as early as 2016, emphasizing the risk quantum computing poses to everything from financial networks to national security.
Why BlackRock’s Warning Matters
BlackRock’s decision to highlight quantum risk in its SEC filing transforms a theoretical concern into a tangible consideration for investors. With over $11.6 trillion in assets under management, the firm’s moves are closely watched and often influential.
The shift to quantum-resistant cryptography will be a gradual and complex process, but it is inevitable. Waiting until quantum computers become capable of breaking encryption would be too late—preparation must start now.
Frequently Asked Questions
What is quantum computing?
Quantum computing is a type of computation that uses quantum-mechanical phenomena to process information. Unlike classical computers, which use bits, quantum computers use qubits. This allows them to solve certain complex problems much faster.
Can quantum computers break Bitcoin today?
No. Current quantum computers are not advanced enough to break Bitcoin’s cryptographic algorithms. Most estimates suggest that such capabilities are at least 10–20 years away.
What is being done to protect Bitcoin from quantum attacks?
Developers and researchers are actively working on post-quantum cryptographic solutions. Proposals like QRAMP aim to migrate Bitcoin to quantum-resistant algorithms, while other blockchains have already implemented advanced encryption standards.
How can I protect my Bitcoin from quantum threats?
For now, using modern wallet types (like SegWit or Taproot) and avoiding address reuse can reduce risk. In the future, users may need to migrate funds to quantum-resistant addresses as directed by wallet providers.
Are other cryptocurrencies at risk?
Yes, any cryptocurrency that relies on elliptic-curve cryptography or similar vulnerable algorithms could be at risk. Projects that have already adopted quantum-resistant encryption are better positioned for the long term.
What role do regulators play in this transition?
Regulatory bodies like NIST are helping standardize post-quantum cryptographic methods. Their guidelines assist developers and companies in adopting universally accepted security practices.