Bitcoin News Today: Bitcoin ETFs Face Sell Recommendation Amid Quantum Computing Threat

Financial firm Noah’s Arc Capital Management has shifted its recommendation for Bitcoin ETFs from “hold” to “sell,” highlighting the potential threat posed by quantum computing. The firm’s analysts believe that Bitcoin’s cryptography could become vulnerable within the next 5-7 years, a risk that is currently being overlooked by the market. This warning comes as Google’s 105-qubit Willow quantum chip has demonstrated the ability to solve problems 10 septillion times faster than traditional supercomputers, significantly accelerating the timeline for when quantum computers could potentially break current cryptography.

This advancement has moved the projected “Q-Day,” when quantum computers could break current cryptography, closer to 5-10 years rather than the previously estimated 2040. Over 60% of Bitcoin’s supply, including the coins held by its creator Satoshi Nakamoto, resides in addresses that are vulnerable to quantum attacks. This poses a significant challenge for Bitcoin, as its decentralized nature makes implementing upgrades slower compared to centralized financial systems.

Centralized financial systems could update their cryptography quickly, but Bitcoin’s decentralized structure means that implementing quantum-resistant signatures would require a hard fork. Noah’s Arc describes this transition as a “daunting task” that could undermine trust in the system. The difficulties in building consensus among Bitcoin’s decentralized community increase the risks associated with executing such an upgrade.

Despite these concerns, Bitcoin ETFs have attracted significant inflows, with $4.39 billion invested last week—the largest weekly inflow since 2014. Assets under management have reached $220 billion, marking 14 consecutive weeks of positive flows. Industry leaders have responded to the quantum computing threat with various proposals. MicroStrategy’s Michael Saylor emphasizes Bitcoin’s foundational principles, while Blockstream’s Adam Back proposes SLH-DSA quantum-resistant algorithms. Developers have also suggested BIP soft forks for post-quantum migration.