Jefferies strategist Christopher Wood exits Bitcoin over quantum computing concerns
Jefferies’ Global Head of Equity Strategy Christopher Wood has removed Bitcoin (BTC) from his model portfolio, citing the risk that advances in quantum computing could eventually break Bitcoin’s security and mining architecture. Wood, who added Bitcoin to the portfolio in 2020 and had previously increased allocation to 10%, reallocated the position into 5% physical gold and 5% gold-mining stocks. He had earlier described both gold and Bitcoin as hedges against dollar debasement but argued gold’s long history gives it an advantage. While quantum computing is still in early stages, Wood says its potential to create a structural vulnerability for Bitcoin is now material enough to affect institutional asset allocation, prompting some investors to rethink crypto exposure. Primary keywords: Bitcoin, quantum computing, Christopher Wood. Secondary/semantic keywords: Jefferies, model portfolio, gold hedge, institutional allocation, crypto risk.
Bearish
Wood’s public exit signals rising institutional concern about a non-speculative, structural risk to Bitcoin—namely quantum computing. Although quantum attacks are not imminent, the narrative shifts from short-term market drivers (macro, adoption) to long-term protocol security. For traders this has several implications: short-term — increased selling pressure or heightened volatility if more institutions vocalize similar concerns; flight-to-safety flows into traditional hedges like gold could temporarily cap BTC upside. Medium-term — possible increased premium on BTC assets perceived as less exposed (layer-2s, custody solutions with planned post-quantum upgrades) or demand for protocol-level quantum-resistant developments. Long-term — if credible quantum threats accelerate, institutional allocations to Bitcoin could shrink, reducing large-buy support and institutional liquidity. Historical parallels: negative institutional statements (e.g., major fund reallocations or regulatory concerns) have often caused short-term drawdowns and volatility rather than sustained collapses. Given quantum computing remains nascent, the immediate market impact should be limited, but the announcement makes the risk more salient and could produce sustained downward pressure on sentiment until technical solutions or clear timelines for quantum advances emerge.