IBIT ETF risk disclosure highlights emerging threat to blockchain cryptography amid record-breaking inflows
BlackRock, the world’s largest asset manager, has officially flagged quantum computing as a potential risk to Bitcoin’s cryptographic integrity in a new update to its iShares Bitcoin Trust (IBIT) regulatory filing. The updated disclosure, dated May 9, marks the first time BlackRock has explicitly cited quantum threats in its Bitcoin ETF documentation.
Key Highlights:
Quantum computing risk added to IBIT ETF filing on May 9
BlackRock warns future tech could break cryptographic algorithms protecting Bitcoin
IBIT is the largest spot Bitcoin ETF, with $64 billion in assets under management
Disclosures are standard regulatory practice, say analysts
Bitcoin ETF net inflows surpass $41 billion since launch in January 2024
BlackRock’s Warning on Quantum Threats
In the revised filing, BlackRock states:
“If quantum computing technology is able to advance […] it could potentially undermine the viability of many of the cryptographic algorithms used across the world’s information technology infrastructure, including the cryptographic algorithms used for digital assets like Bitcoin.”
The concern is that future advancements in quantum computing could theoretically decrypt private keys used in blockchain networks, potentially compromising wallet security, transaction verification, and the overall integrity of the Bitcoin network.
Quantum Computing: Low Probability, High Impact
While the risk remains theoretical, analysts say it’s common for ETF issuers to disclose even remote or speculative threats in their filings.
“They’re going to highlight any potential thing that can go wrong,”
wrote James Seyffart, ETF analyst at Bloomberg Intelligence, in a May 9 post on X.
“It’s completely standard — and makes sense.”
Other industry figures have echoed similar concerns in the past. Tether CEO Paolo Ardoino warned in February that quantum breakthroughs could unlock lost or dormant BTC wallets, potentially bringing long-lost coins back into circulation.
Despite Risks, Bitcoin ETF Inflows Break Records
Investor interest in Bitcoin ETFs remains strong despite theoretical risks. According to Farside Investors, Bitcoin ETFs have collectively seen over $41 billion in net inflows since their launch in January 2024.
On May 8, total Bitcoin ETF net inflows surpassed $40 billion, hitting an all-time high, according to Bloomberg Intelligence.
Eric Balchunas, senior ETF analyst at Bloomberg, noted:
“Lifetime net flows is the #1 most important metric… It’s pure truth, no BS.”
The growth of ETFs like IBIT, alongside Strategy’s continued accumulation, has reinforced the institutional shift toward Bitcoin as a long-term asset class, even amid evolving security discussions.
