“If quantum computing technology is able to advance […] it could potentially undermine the viability of many of the cryptographic algorithms used across the world’s information technology infrastructure, including the cryptographic algorithms used for digital assets like bitcoin,” BlackRock’s amended regulatory filing for its bitcoin fund read.

BlackRock, which manages after around $10 trillion worth of assets for investors, spearheaded Wall Street’s campaign to bring a long-awaited spot bitcoin ETF to market in 2023, with a fleet of funds debuting in January 2024.

BlackRock’s IBIT spot bitcoin ETF has since become one of the fastest growing ETFs of all-time helping to push the bitcoin price record highs and riding a bullish wave on the back of Donald Trump’s election as U.S. president in November after Trump declared himself the first “crypto president.”

The fund now holds almost 3% of the 21 million bitcoin that will ever exist, worth $62 billion at the current bitcoin price, which some have warned could be giving BlackRock outsized control over the network.

“[BlackRock is] going to highlight any potential thing that can go wrong with any product they list or underlying asset thats being invested in,” James Seyffart, ETF analyst with Bloomberg Intelligence, posted to X, adding such a warning is “completely standard.”

However, the quantum computing risk to bitcoin and other cryptocurrencies has exploded recently, with tech giants including Google’s Alphabet making strides in quantum computing research.

“At this point, no blockchain is ready to withstand a quantum attack when this becomes possible, which could very well be much earlier than 2030,” David Carvalho, the chief executive of decentralized post-quantum infrastructure blockchain Naoris Protocol, said in emailed comments.

“Finance giants know the risk is there—BlackRock flagged the risk of quantum computing to bitcoin just this week. So why is the blockchain sector sleepwalking into a disaster?”

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It has long been feared that if a company or government is able to create a fully-fledged quantum computer, it could be used to bypass the encryption that secures the blockchain technology that underpins cryptocurrencies like bitcoin, potentially rending the network vulnerable to a devastating hack. Such vulnerabilities could be patched with software updates.

In February, Paolo Ardoino, the chief executive of USDT stablecoin issuer Tether, predicted that quantum computing would eventually enable hackers to break into inactive bitcoin wallets and steal dormant coins—including that linked to mysterious, anonymous bitcoin creator Satoshi Nakamoto.

“Any bitcoin in lost wallets, including Satoshi (if not alive), will be hacked and put back in circulation,” Ardoino posted to X at the time, calling for development of “quantum-resistant addresses” and adding that “quantum computing is still very far from any meaningful risk of breaking bitcoin cryptography.”