BlackRock warns that advancement in quantum computing could potentially compromise the cryptographic algorithms securing Bitcoin and other blockchain networks

On May 9, 2025, BlackRock updated the registration statement for its iShares Bitcoin Trust (IBIT), highlighting quantum computing as a potential risk to Bitcoin's cryptographic security.

This is the first time BlackRock has formally addressed this concern in its ETF disclosures.

In the revised filing, BlackRock cautioned that advancements in quantum computing could potentially compromise the cryptographic algorithms securing Bitcoin and other blockchain networks.

Specifically, the firm noted that if quantum computing technology advances sufficiently, it could undermine the viability of many cryptographic algorithms used globally, including those protecting digital assets like Bitcoin.

While the risk remains theoretical at present, experts acknowledge its potential threat.

Bloomberg ETF analyst James Seyffart emphasized that such risk disclosures are standard practice, stating that issuers routinely list all potential threats, no matter how remote.

Investor interest in Bitcoin ETFs remains robust.

Since their launch in January 2024, Bitcoin ETFs have collectively attracted over $41 billion in net inflows, with IBIT leading as the largest spot Bitcoin ETF, managing approximately $64 billion in assets.

The inclusion of quantum computing risks in IBIT's filing reflects growing institutional awareness of emerging technological threats to digital asset security. As the field of quantum computing evolves, stakeholders in the cryptocurrency ecosystem are increasingly considering its potential implications.