News 
May 12, 2025 
4 min. 
Asset management giant BlackRock has issued a stark warning about the long-term security risks posed by quantum computing, noting that the technology could compromise the cryptographic foundations of Bitcoin and other digital assets.
In a regulatory update filed on May 9 for its iShares Bitcoin Trust (IBIT), BlackRock revised its risk disclosures to highlight how advancements in quantum computing may jeopardize the integrity of blockchain networks. Notably, the updated filing marks the first time BlackRock has formally acknowledged this threat in relation to its flagship spot Bitcoin ETF.
“If quantum computing evolves to a point where it can break current cryptographic methods, it could disrupt the entire digital asset ecosystem, including Bitcoin,” the filing reads. The concern centers around the potential for quantum machines to decode cryptographic keys, which are essential for securing blockchain transactions and wallets.
Currently, BlackRock’s IBIT stands as the largest U.S. spot Bitcoin ETF, managing around $64 billion in assets. The firm’s explicit mention of quantum threats, therefore, signals growing institutional awareness of the vulnerabilities posed by next-generation computing technologies.
At its core, quantum computing leverages the principles of quantum mechanics to perform complex computations at speeds far beyond traditional computers. As a result, it introduces both exciting possibilities and new cybersecurity challenges for the financial sector.
Bitcoin ETFs See Historic Inflows as Quantum Risks Spark Debate
Meanwhile, as spot Bitcoin ETFs witness record-breaking inflows, experts are reminding investors not to overreact to newly disclosed risks, including those related to quantum computing.
Bloomberg Intelligence analyst James Seyffart emphasized that filings like the one submitted by BlackRock for its iShares Bitcoin Trust (IBIT) are legally obligated to outline all conceivable risks, regardless of their likelihood.
“They’re required to flag anything that could go wrong with the product or its underlying asset,” Seyffart stated in a May 9 post on X (formerly Twitter). “This is completely routine and, frankly, perfectly logical.”
In parallel, the broader Bitcoin ETF market is surging. On May 8, net inflows across Bitcoin ETFs hit an all-time high of approximately $40 billion, according to Bloomberg Intelligence data.
Commenting on the milestone, Bloomberg ETF expert Eric Balchunas called it the most critical metric for evaluating ETF health.
“Net flows over time are the purest signal; there’s no hype, just facts,” he said in a May 9 X post. “It’s incredible to see new highs come so quickly after what many expected to be a major downturn.”
Additionally, the conversation around potential risks has reignited fears about future quantum computing breakthroughs. Back in February, Tether CEO Paolo Ardoino warned that advances in the field could eventually allow hackers to crack dormant Bitcoin wallets.
“Even coins in inactive wallets, including those linked to Satoshi Nakamoto, could be reactivated and brought back into circulation,” Ardoino said in a Feb. 8 X post.
