Key Takeaways
- BlackRock's Bitcoin ETF filing warns of future quantum computing risks.
- The firm continues to lead with over $5.1 billion in IBIT inflows.
- Its Ethereum ETF filing now includes an in-kind redemption structure.
BlackRock has updated its S-1 registration for the iShares Bitcoin Trust (IBIT), warning that potential future advancements in quantum computing could pose a threat to Bitcoin’s security.
The filing, submitted on May 9, notes that quantum breakthroughs might eventually undermine the cryptographic systems that secure Bitcoin wallets and transactions.
BlackRock cautioned that attackers might gain unauthorized access to wallets held by the trust or its investors.
BlackRock stated:
If quantum computing advances significantly, it could compromise Bitcoin’s cryptographic structure.
Comprehensive risk disclosure
Although such risks remain hypothetical, BlackRock included them as part of its comprehensive risk disclosure.
Bloomberg ETF analyst James Seyffart called the move standard:
They are going to highlight any potential thing that can go wrong with any product they list or underlying asset that’s being invested in.
IBIT performance and known threats
IBIT remains the top-performing spot Bitcoin ETF with over $5.1 billion in inflows and 19 straight days of positive net movement.
The updated filing also revisits several known threats, including regulatory uncertainty, high energy usage, mining concentration in China, network forks, and fallout from events like the FTX collapse.
Ethereum ETF amendments
Separately, BlackRock amended its S-1 application for its proposed Ethereum ETF to include an in-kind creation and redemption model.
This would allow ETF shares to be exchanged directly for Ethereum rather than cash, potentially cutting transaction costs and improving market efficiency.
The SEC has yet to approve this model.
