BlackRock has taken a rare step by adding a new line to its application for the iShares Bitcoin Trust (IBIT) — and it is attracting attention. The update, submitted in early May 2025, highlights quantum computing as a potential risk to the long-term security of Bitcoin.

The application specifically emphasizes that if quantum technologies advance far enough, they could break the cryptographic systems that protect Bitcoin.

According to them, this could 'undermine the viability' of the cryptographic algorithms used not only in digital assets but throughout the entire global technology stack.

This is the first time the world's largest asset manager has so directly named this threat in disclosures related to Bitcoin, and it speaks volumes about how seriously institutional players are beginning to take future-focused cryptocurrencies.

Yes, disclosures regarding exchange-traded fund (ETF) risks are generally comprehensive by nature. But the fact that quantum computing made the list (alongside more common issues like volatility and regulatory changes) suggests that it is no longer just a hypothetical issue in the eyes of major financial circles.
For investors, this is a signal of two things: first, that Bitcoin is not insulated from new technological threats, and second, that institutional players like BlackRock are actively weighing these risks as they create long-term strategies in cryptocurrency.

The message is clear: if the industry wants to stay ahead, preparation for a post-quantum world cannot wait.

Quantum computers operate differently than the laptops and servers we use today. Instead of processing numbers one at a time, they can handle a vast number of possibilities simultaneously. This makes them incredibly powerful — especially when it comes to breaking codes.

The security of Bitcoin relies on two main cryptographic systems: SHA-256 and ECDSA. Simply put, these are the tools that protect your Bitcoin address and ensure that only you can authorize transactions. They have worked flawlessly for years, but quantum computers could change that.
Here's the problem: a sufficiently powerful quantum computer might be able to redesign your private key from your public address, especially during a short window after you've broadcast a transaction but before it's confirmed on the blockchain. If this ever becomes possible, someone could intercept your transaction and steal your coins.
This sounds dramatic, but it is not an immediate threat. Most researchers agree that they still have at least 10-20 years before quantum machines capable of doing this become available. The technology does not yet exist — not at the scale or stability needed to break Bitcoin's cryptography.

Nonetheless, warning signs are flashing. About a quarter of existing Bitcoin (BTC) is in older wallet formats that may be more vulnerable if quantum leaps happen faster than expected. And even if the timeline is long, the crypto community knows it needs to act as soon as possible. Work on post-quantum cryptography, which represents a security system capable of withstanding the next generation of computing, is already underway.

Although quantum computing still seems like a future problem, the crypto industry is already preparing for it, and the efforts being made are more serious than most people think.

Some blockchains are not waiting. For example, Algorand has already integrated Falcon, a post-quantum digital signature algorithm that has been officially validated by the National Institute of Standards and Technology (NIST). This means transactions in Algorand are already supported by encryption that could withstand even if quantum machines were to launch tomorrow.
Quantum Resistant Ledger (QRL) is another major project. It was built from the ground up with this threat in mind, using XMSS (a hash-based signature scheme) instead of traditional cryptography. It is not a major player in terms of market capitalization, but it is one of the most advanced projects in terms of pure security design.


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