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BlackRock detailed quantum risks in Bitcoin
The world's largest asset management company, BlackRock, updated the prospectus of the iShares Bitcoin Trust, which trades under the code IBIT, to provide more information on the potential risks related to quantum.
With the changes made yesterday, concerns regarding quantum technology, which were previously mentioned briefly, have been elaborated, emphasizing the potential security vulnerabilities that could arise for Bitcoin and other cryptocurrencies.
The updated text states that quantum computers could render cryptographic algorithms ineffective, which could jeopardize the security of cryptocurrencies on a global scale. It is particularly noted that Bitcoin's encryption infrastructure may remain vulnerable to these developments. The relevant section states, "If quantum computing advances to this extent, there is a risk that the encryption underlying the Bitcoin network could become ineffective. If such a scenario occurs, the security of the Bitcoin network could be jeopardized, and malicious actors could potentially seize the Bitcoins held in the fund or in other wallets on the network, leading to losses for shareholders."
"A standard practice in SEC applications"
Bloomberg ETF analyst James Seyffart stated that such risk disclosures are standard practice in SEC applications, saying, "It is completely normal to comprehensively outline the potential risks that any product or underlying asset they plan to list may encounter."
On the other hand, it is emphasized in the explanation that the Bitcoin community is working on quantum-resistant solutions, but there is no certainty about how quickly these solutions can be implemented.
Published: May 10, 2025 11:21