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BlackRock Bitcoin alert

In a rare move, BlackRock has quietly added a new line to its iShares Bitcoin Trust (IBIT) filing — and it is turning heads. This update was submitted early in May 2025 and flagged quantum computing as an issue that could threaten Bitcoin’s security.

In the filing, they specifically state that quantum technology could be dangerous if it advances too far. break the cryptographic systems that secure Bitcoin. 

It could be described as a “short-term” solution. “undermine the viability” The cryptographic algorithms that are not used only in digital assets, but also across the tech stack.

This is the first time that the largest asset manager in the world has called out the threat of Bitcoin so directly. It shows how serious institutional players have started to take the future-proofing process. crypto.

Yes, exchange-traded fund (ETF) The nature of risk disclosures is to be comprehensive. The fact that quantum computer made it on the list (along with more common concerns such as volatility and regulatory changes) shows this is no longer a theoretical issue.

Investors can take two important things from this: that Bitcoin’s not immune to new tech threats and that BlackRock is actively evaluating those risks in building their long-term strategy. crypto. 

This message is very clear. If industry wishes to be ahead of the curve, then preparing for post-quantum technology cannot wait.

Did you Know? BlackRock is the biggest asset manager in the world. BlackRock manages more assets than the GDP of Germany, France and other countries combined.

Bitcoin quantum risk: Is it real?

Quantum computer work in a different way than the servers and laptops we have today. They can do more than crunch numbers individually. That makes them incredibly powerful — especially when it comes to cracking codes.

Bitcoins’ security is based on two cryptographic systems. SHA-256 and ECDSA. Basically, they are the tools used to secure your Bitcoin addresses and verify that you alone can authorise transactions. These computers worked perfectly for years but quantum computing could be the change.

The problem: a powerful quantum computer could be capable of reverse engineering your private key from your public addressThis is especially true during the brief window that follows a broadcasted transaction, but precedes its confirmation on the blockchain. In the event that this was ever possible, someone might hijack your transaction to steal your coin.

It’s not a threat that is imminent. The majority of researchers believe that it will be at least another 10-20 year before quantum computers are able to pull off this feat. The tech just isn’t there yet — not at the scale or stability needed to break Bitcoin’s cryptography.

Yet, warning signs continue to flash. About a quarter (BTC() is stored in old wallet formats, which could make it more vulnerable to attacks if quantum leaps occur faster than anticipated. Even if it is a long timeline, the crypto-community knows that they must act quickly. Already, work has begun on post-quantum cryptographyThis is a system of security that can stand up to the new generation in computing.

Did you Know? Theoretically, quantum computers could solve some problems much faster than traditional computers. Google’s Sycamore Processor, for example, completed a task in just 200 seconds. Even the most sophisticated classical supercomputers would have taken 10,000 years.

Bitcoin: Is it safe from Quantum Computing?

The crypto industry has already begun to prepare for quantum computing, which is more important than many people think.

Bitcoin: What it is (and what it’s not) doing

It is not easy to change the blockchain protocol. You need a large consensus, thorough testing and plenty of time. This has not stopped Bitcoin developers from putting forward new ideas.

QRAMP, or the Quantum-Resistant Address Migration Protocol is one of those proposals. Users are encouraged to transfer their crypto-coins from old, vulnerable formats of wallets to new, quantum safe algorithms. The hard fork would be required, and it is a big task to ensure the future of Bitcoin before any so-called “blockchain” occurs. “Q-Day” sneaks up.

What’s ahead of you?

Some blockchains have already been integrated. Algorand has integrated, for instance. FalconThe US National Institute of Standards and Technology has officially approved, an algorithm for post-quantum signatures. Algorand transactions are now protected by an encryption system that will hold even when quantum machines become available tomorrow.

The Quantum Resistant Ledger (QRL) It’s another one. The system was created from the beginning with this in mind. It uses XMSS, a hash signature scheme instead of conventional cryptography. Although it is not the biggest player on the market, its security features are amongst those that make up one of most sophisticated projects.

What’s the problem?

Obviously, this all isn’t easy to do. Quantum-safe encryption is often accompanied by trade-offs. Falcon is a compact, efficient algorithm that still requires more computing power than other algorithms. 

Moreover, switching everyone — miners, exchanges, wallet apps and individual users — to a new cryptographic standard could be a logistical nightmare unless it’s planned years in advance.

It’s also important to find the right balance. If you act too early, it’s possible to break something or depend on technology that is not battle-tested. If you delay too much, your security is compromised. 

It’s for this reason that many are using a 10-20 year window to estimate when the threat of quantum computing is likely to become real. Nobody wants to wait until the very last minute to start preparing.

Bitcoin and the future of quantum computing

It’s important to be early. If you want to be at the forefront of tech that may one day redefine digital security, then waiting is just not an option.

How would you describe preparation?

Developers should begin by testing and integrating quantum resistant algorithms into their existing systems. Many are currently experimenting with “hybrid” Approaches, using traditional and post quantum cryptography together, so that networks won’t be caught by surprise if or when Q-Day comes.

For crypto businesses — exchanges, custodians and wallet providers — the job is twofold: Make sure your infrastructure is future-proof, and make sure your users know what’s coming. The UX and education will be crucial in this process. It’s not something that the average owner can do or should.

And then there’s the regulatory side — maybe not the most exciting part of crypto, but an absolutely critical one in this context.

Already, you can see movement. The NIST completed several post quantum cryptographic standard in 2024. It gives the industry an initial starting point and common language on which to build. What’s missing, however, is a strong regulatory drive that states: “Here’s how and when this should happen.”

Good policy here wouldn’t mean clamping down on innovation — it would mean supporting it. You could fund open-source software research, encourage post-quantum upgrade and create frameworks for institutions to adopt security standards without losing momentum.

Did you know that? In 2016, the US government started preparing for quantum threats. By 2024, NIST was motivated by fears that quantum computing could break encryption to protect everything from Bitcoins to national security infrastructure.

The slow burn 

BlackRock didn’t need to bring up quantum risk in its ETF filing — but it did. It’s much more credible when it is written down by a big company.

This transition will not happen in a day. The transition will be slow, messy and involve many difficult technical decisions. The process must be completed. 

It would be a mistake to wait until quantum computer actively breaks SHA256.