BlackRock, the world‘s largest asset manager, has recently updated its iShares Bitcoin Trust (IBIT) to specifically address an emerging technological concern: quantum computing. In the revised registration statement, filed on 9 May, BlackRock emphasises that quantum computing could pose a future threat to the cryptographic algorithms underpinning Bitcoin and other digital assets.

This marks the first time BlackRock has explicitly included this risk in the disclosures for its spot Bitcoin ETF — which now holds over $64 billion in assets under management. The addition highlights how seriously the asset manager takes this potential threat, even though its real-world impact may still be years away.

What Exactly Is Quantum Computing?

Quantum computing leverages principles from quantum mechanics to perform calculations that are practically impossible for classical computers. While traditional computers use bits (zeroes and ones), quantum computers operate with qubits, which can exist in multiple states at once. This makes it theoretically possible to solve extremely complex problems at lightning speed — including breaking encryption methods.

Although it may sound like science fiction, early developments are already underway. Major tech companies and governments around the world are heavily investing in this technology. And while it could take years before quantum computers can realistically compromise cryptographic security, it‘s a risk the crypto industry cannot afford to ignore.

What Does This Mean for Bitcoin?

The security of Bitcoin and other blockchains largely relies on mathematical algorithms that are currently considered practically unbreakable. However, if quantum computing continues to advance, these algorithms could one day become vulnerable. This would have serious implications for network integrity, transaction security, and wallet protection.
BlackRock notes in the filing:

“If quantum computing technology is able to advance sufficiently, 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.”

What Is the Market Saying?

While these risks remain largely theoretical at this stage, including them in official filings is standard practice in the financial sector. Analysts such as James Seyffart from Bloomberg Intelligence point out that such risk disclosures are intended to offer full transparency about anything that could, however remotely, impact an asset.
Interestingly, despite these risks, the market for Bitcoin ETFs continues to grow. Since launching earlier this year, more than $41 billion in net inflows have been recorded. Demand remains high, suggesting that many investors maintain confidence in the long-term potential of digital assets — even with emerging technological uncertainties on the horizon.

Disclaimer: This is not financial advice. Always conduct your own research and seek professional guidance where appropriate.