Strategist reduces Bitcoin exposure due to quantum computing risks

Source: PortaldoBitcoin Original Title: US Bank Sells All Its Bitcoin Over Quantum Computing Fears Original Link: Strategist Christopher Wood, Jefferies’ global equity strategist, has decided to liquidate all Bitcoin holdings in the “GREED & fear” model portfolio, citing increasing risks associated with the advancement of quantum computing.

The 10% allocation previously dedicated to the cryptocurrency has been equally redistributed between physical gold and gold mining stocks, a move that, according to Wood, reflects a structural reassessment of Bitcoin’s role as a store of value in the long term.

In a note released this week, Wood stated that while he does not see quantum computing as a factor capable of drastically impacting Bitcoin’s price in the short term, the theoretical debate around the topic is already enough to weaken its thesis within a retirement portfolio.

For him, the possibility that technological advances could compromise Bitcoin’s cryptographic foundations poses an “existential” threat to the idea of immutable digital scarcity, which supported its initial inclusion in the model.

Wood was one of the first institutional strategists to incorporate Bitcoin into a diversified portfolio during the pandemic-era stimulus cycle, when the asset began to be treated as a digital alternative to gold.

At the time, the central argument revolved around Bitcoin’s fixed supply, with issuance scheduled until 2140, along with expectations that institutional custody infrastructure would make the asset viable for large investors. However, this logic has come into question amid new studies on long-term security.

Among the references cited by Wood is a study published in May 2025 by researchers from Chaincode Labs, estimating that between 4 million and 10 million bitcoins—roughly 20% to 50% of the circulating supply—could, in theory, be vulnerable to private key extraction by quantum computers. The study indicates that exchange wallets and institutional holdings are among the most exposed, especially in cases of address reuse, a common practice in the network’s early years.

The Quantum Threat

The strategist’s decision comes amid intensified debate over the timelines and impacts of the so-called “quantum threat” to cryptographic systems.

The topic gained traction after the presentation, in February 2025, of the Majorana 1 quantum chip, seen by parts of the industry as a significant step toward the so-called “Q-Day,” when current cryptographic standards could become vulnerable.

Although experts still disagree on when, or if, this point will be reached, the mere shortening of projections has been influencing strategic decisions.

The sector is also beginning to respond practically. Projects focused on so-called “post-quantum cryptography” have been attracting capital, such as Project Eleven, which raised US$ 20 million in a Series A round led by Castle Island Ventures to develop tools to protect against quantum attacks.

The discussion extends beyond Bitcoin. Ethereum co-founder Vitalik Buterin has already stated that resilience against secular-scale quantum attacks is a prerequisite for any protocol aspiring to become truly self-sustaining. For Buterin, adapting to this scenario is not optional but an inevitable part of the evolution of decentralized networks.