BlackRock (NYSE: BLK), the world’s leading asset manager, recently issued a notable warning about the future of Bitcoin in its updated iShares Bitcoin Trust (IBIT) filing, submitted in early May 2025.
The firm, overseeing assets worth more than $11.6 trillion—greater than the combined GDP of Germany and France—highlighted the potential threat quantum computing poses to Bitcoin’s cryptographic security.
This concern focuses on the vulnerability of Bitcoin’s foundational algorithms, SHA-256 and ECDSA, which ensure the network’s integrity.
Quantum computers, which operate using qubits to process multiple outcomes simultaneously, could one day break the encryption that protects digital currencies like Bitcoin, a risk BlackRock now deems significant enough to address in detail.
This warning expands on previous mentions in BlackRock’s filings, where quantum risks were only briefly noted, to a more comprehensive discussion about Bitcoin’s long-term sustainability.
The U.S. government has been preparing for quantum-related challenges since 2016, with the National Institute of Standards and Technology (NIST) stepping up efforts in 2024 to safeguard critical systems, including those tied to national security.
Bitcoin, which relies on cryptographic mechanisms for its security, faces a similar vulnerability.
Research, such as a study published in ScienceDirect, has pointed out that major cryptocurrencies like Bitcoin, Ethereum, Litecoin, and ZCash could be at risk from quantum advancements.
Quantum algorithms, such as Grover’s, might solve cryptographic problems far more quickly than traditional computers, potentially disrupting Bitcoin’s mining operations and its decentralized nature, as noted in analyses by Coinbase.
At present, no quantum computer exists that can break Bitcoin’s encryption, with experts estimating that such a development might be a decade or more away, according to Coinbase.
BlackRock’s filing acknowledges that while the Bitcoin community is working on quantum-resistant technologies, there is uncertainty about whether these solutions will be implemented across the network in time to address future threats.
The firm also extended similar concerns to its iShares Ethereum Trust filing, incorporating measures like in-kind creation and redemption, reflecting broader apprehensions about the impact of quantum computing on its cryptocurrency investment offerings.
BlackRock’s IBIT ETF currently holds $70.1 billion in Bitcoin, making its cautionary stance particularly noteworthy for institutional investors.
The possibility that quantum computers could one day derive private keys from public ones raises the alarming prospect of unauthorized access to cryptocurrencies, a significant risk Coinbase has identified for the broader industry.
Alongside more immediate challenges like market fluctuations and regulatory changes, BlackRock’s inclusion of quantum risks in its filing underscores the firm’s view of this as a critical long-term obstacle to Bitcoin’s widespread adoption.
For now, the threat remains theoretical, as access to quantum computers is limited by technical and operational hurdles, according to Coinbase.
Some suggest that BlackRock’s decision to emphasize quantum risks might also be a regulatory precaution.
Regardless, this development signals heightened institutional awareness of the technological challenges that could influence the future of cryptocurrencies, prompting a closer examination of Bitcoin’s ability to withstand the rise of quantum computing advancements.