BlackRock Flags Quantum Computing as a Risk for Bitcoin Security
BlackRock, the world’s largest asset manager, has quietly added a new line to its iShares Bitcoin Trust filing—and it’s making waves across the crypto industry. The update, submitted in early May 2025, specifically highlights quantum computing as a potential risk to Bitcoin’s long-term security. This is a significant shift, marking the first time BlackRock has directly called out quantum tech as a threat in a Bitcoin-related disclosure.
What’s the Warning?
In the filing, BlackRock warns that advancements in quantum technology could “undermine the viability” of the cryptographic systems that secure Bitcoin. Specifically, Bitcoin relies on two critical systems: SHA-256 and ECDSA, which protect Bitcoin addresses and ensure transaction authorization. If quantum computing advances far enough, it could theoretically reverse-engineer private keys from public addresses, creating a risk that transactions could be hijacked before they’re confirmed on the blockchain.
For context, this concern is not immediate—most researchers believe we’re 10 to 20 years away from quantum computers that could break Bitcoin’s cryptography. But the warning signals that major financial institutions are taking this long-term risk seriously.
Why It Matters for Investors
BlackRock’s disclosure indicates two key points:
- Bitcoin is not immune to emerging technology risks.
- Institutional players like BlackRock are actively factoring these risks into their long-term strategies for Bitcoin.
This matters because institutions have historically focused on risks like volatility and regulation. Adding quantum computing to the mix shows a growing awareness of how future technologies could reshape digital assets.
What is Quantum Computing Anyway?
Unlike traditional computers that process one calculation at a time, quantum computers can explore many possibilities simultaneously, making them incredibly powerful—especially for cracking cryptographic systems. If quantum computing reaches a certain level of sophistication, it could theoretically compromise Bitcoin’s security model by revealing private keys and enabling attackers to steal funds in-flight.
Is Bitcoin Safe from Quantum Risk Right Now?
For now, yes. Quantum computing is still in its early stages. Most experts believe it will take at least a decade or more before quantum machines can realistically break the cryptographic systems that underpin Bitcoin. However, the crypto industry is already preparing for this future. Projects like Algorand and Quantum Resistant Ledger (QRL) are proactively using quantum-resistant algorithms. There’s also a proposed solution for Bitcoin called QRAMP, or Quantum-Resistant Address Migration Protocol, which would allow users to shift their coins to quantum-safe addresses.
Challenges of a Quantum Upgrade
Upgrading Bitcoin’s cryptography isn’t simple. A hard fork would likely be required, demanding broad community consensus, extensive testing, and global coordination across exchanges, wallets, and miners. Additionally, post-quantum algorithms tend to be more resource-intensive, creating potential trade-offs in performance.
Regulatory and Industry Moves
The U.S. National Institute of Standards and Technology (NIST) has finalized several post-quantum cryptographic standards, giving the industry a foundation to build on. However, a clear regulatory push—backed by policies, incentives, and frameworks—is still needed to guide adoption without stifling innovation.
Final Thoughts
BlackRock didn’t have to mention quantum risk in its ETF filing, but the fact that it did underscores the importance of proactive security planning. Quantum computing may not be an immediate threat, but waiting until quantum systems can actively break cryptographic algorithms would be too late. For Bitcoin’s long-term survival, preparation has to start now.
