American investment banks sell off Bitcoin holdings due to quantum computing threats

Source: PortaldoBitcoin Original Title: US Bank Sells All Its Bitcoin Over Fear of Quantum Computing Original Link: Jefferies’ global equity strategist Christopher Wood has decided to zero out Bitcoin exposure in his “GREED & fear” model portfolio due to the increasing risk posed by the development of quantum computing.

The previously allocated 10% position in Bitcoin has been redistributed evenly to spot gold and gold mining stocks. Wood stated that this move reflects a structural reassessment of Bitcoin’s role as a store of value over the long horizon.

In a statement released this week, Wood said that although he believes quantum computing will not cause a serious impact on Bitcoin prices in the short term, the theoretical discussions surrounding the topic are enough to weaken its investment case in pension portfolios.

For him, the potential for technological advances to undermine Bitcoin’s cryptographic foundations represents an “existential” threat to the concept of digital scarcity, which originally justified its inclusion in the model.

Wood is one of the earliest institutional strategists to include Bitcoin in a diversified portfolio, during the stimulus cycle of the pandemic era, when Bitcoin began to be viewed as a digital alternative to gold.

The core argument at that time centered around Bitcoin’s fixed supply, with issuance extending to 2140, and the expectation that institutional custody infrastructure would make the asset feasible for large investors. However, with new research emerging on long-term security, this logic has begun to be questioned.

The referenced research includes a study published in May 2025 by Chaincode Labs researchers, estimating that 4 million to 10 million Bitcoin (20% to 50% of circulating supply) could theoretically be vulnerable to private key extraction attacks by quantum computers. The study pointed out that exchanges and institutional wallets are at greatest risk, especially when addresses are reused, which was common in the early days of the network.

Quantum Threat

This strategist’s decision comes amid intensifying debate over the timeline and impact of quantum threats to cryptographic systems.

The topic gained attention in February 2025 after Microsoft launched the Majorana 1 quantum chip, seen by some in the industry as a significant step toward “Q-Day” — the point at which current cryptographic standards could become vulnerable.

While experts remain divided on when or if this will happen, the shortened forecast timeline is already influencing strategic decisions.

The industry has also begun taking practical steps in response. Projects focused on “post-quantum cryptography” are attracting capital, such as Project Eleven, which raised $20 million in Series A funding led by Castle Island Ventures to develop tools to defend against quantum attacks.

This discussion extends beyond Bitcoin. Ethereum co-founder Vitalik Buterin has stated that resistance to quantum-level attacks is a prerequisite for any protocol aspiring to be truly self-sustaining. For Buterin, adapting to this scenario is not optional but an inevitable part of the evolution of decentralized networks.