Asset Manager Updates iShares Bitcoin ETF Filing to Address Potential Cryptographic Vulnerabilities
BlackRock, the world’s largest asset manager, has formally identified quantum computing as a potential risk to the security of the Bitcoin network, flagging it in a May 9 update to the registration statement for its iShares Bitcoin ETF (IBIT).
The updated filing warns that advances in quantum computing could one day undermine the cryptographic foundations that secure not only Bitcoin but digital assets and global IT infrastructure at large.
“If quantum computing technology is able to advance,” BlackRock stated, “it could potentially undermine the viability of many of the cryptographic algorithms used across the world’s information technology infrastructure, including those used for digital assets like bitcoin.”
This marks the first time BlackRock has explicitly referenced quantum threats in its Bitcoin ETF filings.
Standard Disclosure, Not Immediate Concern
While the risk sounds alarming, experts stress it’s a precautionary measure, not a red flag for imminent danger.
James Seyffart, an ETF analyst at Bloomberg Intelligence, said such disclosures are routine in ETF filings and reflect a requirement to account for all conceivable risks, no matter how remote.
“It’s completely standard,” Seyffart wrote on X. “And honestly makes complete sense.”
Quantum computing is a rapidly advancing field that leverages the principles of quantum mechanics to build exponentially more powerful computers. Experts have long debated its potential to break public-key cryptography, which underpins systems like Bitcoin wallets and transaction verification.
IBIT Leads With $64 Billion in Assets
Despite the theoretical risk, BlackRock’s iShares Bitcoin ETF (IBIT) remains the largest spot Bitcoin ETF, with approximately $64 billion in net assets, according to its website.
Bitcoin ETFs have been a major success story in 2025, collectively drawing over $41 billion in net inflows since launching in January, according to Farside Investors.
On May 8, the industry surpassed $40 billion in all-time inflows, setting a new record for Bitcoin ETF demand. Bloomberg analyst Eric Balchunas called lifetime net flows the “most important metric to watch.”
“Very hard to grow, pure truth, no BS,” Balchunas said. “Impressive, they hit a new high water mark so soon after the world was supposed to end.”
Quantum Threats Still Theoretical — For Now
While quantum computing is advancing, many researchers believe it may take years or even decades before quantum machines can break SHA-256 encryption, the cryptographic backbone of Bitcoin.
Still, prominent voices in the crypto space have warned of future risks. In February, Tether CEO Paolo Ardoino said inactive wallets — including the original wallets associated with Satoshi Nakamoto — could be vulnerable once quantum machines reach maturity.
“Any Bitcoin in lost wallets, including Satoshi’s (if not alive), will be hacked and put back in circulation,” Ardoino wrote on X.
Final Thoughts: Preparing for the Post-Quantum Future
BlackRock’s acknowledgment of quantum computing risks doesn’t signal immediate trouble for Bitcoin ETFs, but it highlights how seriously institutional players are taking long-term infrastructure threats.
As blockchain security researchers and quantum computing experts continue their work, it’s likely that quantum-resistant cryptographic standards will be developed well before such threats become practical.
In the meantime, disclosures like BlackRock’s serve as important reminders that even Bitcoin — the world’s most secure digital asset — isn’t immune to the laws of technological disruption.
