BlackRock has warned that advances in quantum computing could break the cryptography that protects Bitcoin and other blockchain networks.
In an updated filing for its iShares Bitcoin ETF (IBIT), the asset manager added a section on how powerful quantum machines might crack digital signatures. If that happens, the basic trust model of Bitcoin could collapse.
Expanded Risk Disclosures
The new filing stretches from page 16 to page 65 and covers many dangers facing Bitcoin investors. Alongside quantum computing, BlackRock spelt out threats such as unclear regulations, the environmental toll of mining, and a heavy concentration of mining power in China.
It also noted risks from past events like the FTX collapse and the possibility of protocol forks that could split the network. Adding quantum computing to this list marks the first time BlackRock has called it out by name in its ETF registration.
Bitcoin’s Resilience So Far
For more than a decade, Bitcoin’s security has held strong against hacks and attacks. Its underlying system, the Elliptic Curve Digital Signature Algorithm (ECDSA), has proven reliable in the face of every known threat.
Even so, experts say that a large enough quantum computer running Shor’s algorithm could solve the math behind ECDSA in minutes rather than millennia. While that level of quantum power remains theoretical today, it could arrive in two decades or so, according to Nvidia’s CEO, Jensen Huang.
How ECDSA Could Be Broken?
ECDSA secures Bitcoin wallets and validates transactions by relying on the difficulty of a problem called the discrete logarithm. Classical computers take an impractical amount of time to solve it.
A quantum computer using Shor’s algorithm would bypass that challenge, quickly deriving private keys from public keys. If a quantum machine ever reaches this capability, attackers could forge signatures, steal funds, and rewrite transaction history.
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Expert Perspective
James Seyffart of Bloomberg Intelligence stressed that filing updates must list every conceivable risk. He said it is standard practice to highlight even remote scenarios.
Seyffart noted that such disclosures are meant to inform investors of all possible issues, no matter how unlikely. In other words, BlackRock is covering all its bases by naming quantum computing alongside more immediate concerns.
ETF Success and Investor Interest
Since their launch in January, Bitcoin ETFs have drawn massive inflows. Data from Farside Investors shows over $41 billion in net new money. The rapid adoption of ETFs reflects growing demand for regulated, easily accessible Bitcoin exposure.
By naming quantum computing as a potential threat, BlackRock aims to keep its investors fully aware, even as the product continues to attract capital.
Why This Matters?
Mentioning quantum risk puts a long-term spotlight on the future of blockchain security. While real threats like regulation and market crashes dominate headlines, the looming quantum age could force a major redesign of digital assets.
Developers and researchers will need to explore quantum-resistant cryptography to keep networks safe. Investors, too, may start asking whether funds are ready for a post-quantum world.
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