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BlackRock Warns Quantum Computing Threatens Bitcoin Security

Coin WorldMonday, May 12, 2025 3:51 pm ET

1min read

BlackRock, a prominent asset manager, has highlighted the potential risks posed by quantum computing to the cryptography securing Bitcoin and other blockchain networks. In a recent regulatory filing, BlackRock updated the registration statement for its iShares Bitcoin ETF (IBIT), explicitly mentioning the threat that advanced quantum computing technology could pose to the integrity of the Bitcoin network.

According to the filing, if quantum computing technology advances to a point where it can undermine the cryptographic algorithms used in digital assets like Bitcoin, it could potentially render the cryptography securing these assets ineffective. This is the first time BlackRock has explicitly flagged this risk in its IBIT disclosures. The IBIT ETF is notable for being the largest spot Bitcoin ETF, with a significant amount of net assets.

Quantum computing is an emerging field that leverages the principles of quantum mechanics to enhance computers' processing capabilities. This technology has the potential to revolutionize various industries, but it also poses significant risks to the security of digital assets.

Analysts have noted that risk disclosures, such as the one made by BlackRock, are standard practice and are required to highlight every possible risk to an asset, even those that are extremely unlikely. This approach ensures that investors are fully informed about the potential challenges and risks associated with their investments.

Since their launch in January, Bitcoin ETFs have collectively attracted substantial net inflows, indicating a growing interest in digital assets among investors. This trend highlights the increasing acceptance and adoption of Bitcoin and other cryptocurrencies in the financial markets.

In February, the CEO of Tether predicted that quantum computing could eventually enable hackers to break into inactive Bitcoin wallets and recover the dormant coins. This prediction underscores the potential impact of quantum computing on the security of digital assets and the need for ongoing vigilance and innovation in the field of cryptography.

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