VanEck May Exit Bitcoin Over Quantum Computing Threat
VanEck CEO Jan van Eck warns of a rising quantum computing threat to Bitcoin’s elliptic curve cryptography, saying his firm will walk away from its spot Bitcoin ETF if no quantum-resistant upgrade arrives. The quantum computing threat could enable attackers to derive private keys from public keys using Shor’s algorithm, especially given that around one-third of BTC uses early P2PK addresses exposing public keys. Slow, consensus-driven network upgrades delay anti-quantum fixes, prompting major asset managers like BlackRock to flag quantum risk in ETF filings. As a result, institutional investors are exploring hedges in privacy coins such as Zcash (ZEC), which employs zk-SNARKs and is researching quantum-resistant cryptography. Traders should monitor Bitcoin development progress, ETF filings, and ZEC price movements as indicators of institutional risk sentiment.
Bearish
This news is bearish for Bitcoin because it highlights long-term security vulnerabilities from quantum computing threat and raises doubts among institutional investors. VanEck’s potential exit and major managers flagging quantum risk can undermine confidence, prompting hedges into privacy coins. In the short term, traders may see heightened volatility as risk sentiment shifts; in the long term, unresolved quantum upgrades could pressure Bitcoin’s valuation until a quantum-resistant solution is adopted.