Emerging technologies, including quantum computing, could potentially render the cryptography securing Bitcoin and other blockchain networks ineffective, asset manager BlackRock said in a regulatory filing.\u00a0<\/p>\n
On May 9, BlackRock updated the registration statement for its iShares Bitcoin ETF (IBIT). The revised version addressed potential risks to the integrity of the Bitcoin network posed by quantum computing, the filing shows<\/a>.<\/p>\n \u201c[I]f quantum computing technology is able to advance [\u2026] it could potentially undermine the viability of many of the cryptographic algorithms used across the world\u2019s information technology infrastructure, including the cryptographic algorithms used for digital assets like bitcoin,\u201d BlackRock said. <\/p>\n It is the first time the asset manager has explicitly flagged this risk in its IBIT disclosures. The IBIT ETF is the largest spot Bitcoin (BTC<\/a>) ETF, with approximately $64 billion in net assets, according to its website.\u00a0<\/p>\n Quantum computing is an emergent field that seeks to use the principles of quantum mechanics to greatly enhance computers\u2019 processing capabilities.\u00a0<\/p>\n Source: <\/em>James Seyffart\/Bloomberg Intelligence <\/em><\/a><\/p>\n Related: <\/strong><\/em>Quantum computing will bring lost Bitcoin ‘back in circulation\u2019 \u2014 Tether CEO<\/strong><\/em><\/a><\/p>\n James Seyffart, an analyst for Bloomberg Intelligence, cautioned that risk disclosures such as IBIT\u2019s are required to highlight every possible risk to an asset, even those that are extremely unlikely.\u00a0<\/p>\n \u201cThey are going to highlight any potential thing that can go wrong with any product they list or underlying asset that\u2019s being invested in,\u201d Seyffart said in a May 9 X post. \u201cIt’s completely standard. And honestly [it] makes complete sense.\u201d<\/p>\n Since launching in January, Bitcoin ETFs have collectively attracted more than $41 billion in net inflows, according<\/a> to data from Farside Investors.\u00a0<\/p>\n Bitcoin ETF inflows reached all-time highs on May 8. Source: <\/em>Eric Balchunas\/Bloomberg Intelligence<\/em><\/a><\/p>\n On May 8, Bitcoin ETF net inflows surpassed all-time highs of around $40 billion, according to Bloomberg Intelligence.\u00a0<\/p>\n \u201cLifetime net flows is #1 most imp metric to watch IMO, very hard to grow, pure truth, no bs,\u201d Bloomberg Intelligence analyst Eric Balchunas said<\/a> in a May 9 X post. \u201cImpressive, they were able to make it to a new high water mark so soon after the world was supposed to end.\u201d<\/p>\n In February, Tether CEO Paolo Ardoino predicted that quantum computing would eventually enable hackers to break into inactive Bitcoin wallets<\/a> and recover the dormant coins.\u00a0<\/p>\n \u201cAny Bitcoin in lost wallets, including Satoshi (if not alive), will be hacked and put back in circulation,\u201d Ardoino said<\/a> in a Feb. 8 X post.<\/p>\nRecord-breaking inflows<\/h2>\n