BlackRock Warns Quantum Computing Could Threaten Bitcoin’s Cryptography
By José Oramas
May 13, 2025
In a noteworthy development for cryptocurrency investors, BlackRock has issued a warning regarding the potential impact of quantum computing on Bitcoin’s security. This alert is part of the asset management firm’s amended filing for its iShares Bitcoin Trust (IBIT), marking the first time quantum technology has been explicitly cited as a systemic risk in official ETF disclosures.
The Quantum Threat to Bitcoin
In the freshly updated IBIT filing submitted on May 9, BlackRock specifically noted that advancements in quantum computing could compromise the cryptographic algorithms safeguarding Bitcoin. Despite the current capabilities of quantum computers being insufficient to pose a direct threat, the firm foresees significant risks emerging as the technology progresses.
James Seyffart, an analyst specializing in ETFs at Bloomberg, pointed out that these disclosures are a standard practice for funds of this nature. He remarked that while the new language in BlackRock’s filing highlights important risks, it is routine for asset managers to assess potential threats comprehensively. However, the seriousness of the quantum computing mention indicates a growing recognition within the financial industry of the future risks posed to digital assets.
The updated filings now encompass nearly 50 pages detailing various risks associated with Bitcoin and cryptocurrencies, including regulatory hurdles, environmental concerns stemming from mining activities, the geographical concentration of mining operations in China, and the effects of market events, such as the fallout from the FTX collapse.
Understanding the Quantum Challenge
At the core of the issue is Bitcoin’s reliance on the Elliptic Curve Digital Signature Algorithm (ECDSA), which secures digital wallets and validates transactions. Should quantum computers achieve sufficient power, they may deploy Shor’s algorithm—an advanced quantum computing technique capable of solving problems that underlie modern cryptographic systems far more efficiently than classical computers can. This could threaten the very foundation of Bitcoin’s security and render current cryptographic safeguards obsolete.
While the quantum menace may still be a decade or two away from fully materializing, according to industry leaders like Nvidia’s CEO Jensen Huang, the Bitcoin community is already taking proactive steps. Notably, a proposal called QuBit, created by the pseudonymous developer Hunter Beast, introduces a quantum-resistant address format known as Pay to Quantum Resistant Hash (P2QRH). This initiative aims to implement signature schemes resilient to quantum attacks while incentivizing their adoption—a strategy reminiscent of Bitcoin’s SegWit rollout.
The industry is also actively pursuing research in two distinct areas: the development of post-quantum cryptography, which seeks to create classical algorithms defended against potential quantum attacks, and the exploration of quantum-native blockchains that would leverage quantum mechanics within blockchain technology and communications.
The Road Ahead
As BlackRock’s alert underscores, while the immediate threat from quantum computing remains theoretical, the cryptocurrency market must remain vigilant and proactive. Industry players are encouraged to continue exploring innovative solutions to safeguard their digital assets against future advancements in quantum technology.
In conclusion, BlackRock’s warning serves as an important reminder of the complexities and potential vulnerabilities faced by cryptocurrencies like Bitcoin. As the landscape evolves, stakeholders must not only adapt but also prepare for the challenges that lie ahead in the realm of quantum computing.
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