Chiara Bianchi
A major shift is underway in institutional crypto strategy. Christopher Wood, Jefferies’ global head of equity strategy, has removed Bitcoin entirely from the firm’s “GREED & fear” model portfolio, pointing to rising concerns about quantum computing and the future of cryptographic security.
Wood’s previous 10% Bitcoin position has now been reallocated into two equal parts:
- 5% into physical gold bullion
5% into gold mining equities
The decision reflects a growing belief that Bitcoin’s long-term role as a store of value could be weakened if quantum technology advances faster than expected.
While Wood does not expect an immediate price shock, he argues that quantum computing presents a theoretical but existential challenge to Bitcoin’s core security model.
“From a pension fund perspective, Bitcoin’s store-of-value thesis is on less solid ground over the long term,” Wood noted.
Research Suggests Large BTC Supply Could Be Exposed
Citing a 2025 Chaincode Labs study, Wood highlighted that between 4 million and 10 million BTC — up to 50% of circulating supply — may be vulnerable to quantum-enabled private key extraction.
Wallets with reused addresses, including many exchange and institutional holdings, were identified as especially at risk.
Industry Accelerates Quantum-Readiness Efforts
Concern around “Q-Day” — the moment when quantum computers could break today’s encryption — is no longer theoretical. Microsoft’s Majorana 1 quantum chip, unveiled in 2025, intensified fears that this timeline may be approaching faster than expected.
Coinbase’s head of investment research has warned that up to 33% of Bitcoin’s supply could be exposed, especially early “Satoshi-era” coins.
Institutions and Governments Begin Defensive Moves
- BlackRock flagged quantum risk in its iShares Bitcoin Trust ETF prospectus
- Project Eleven raised $20 million to build quantum-resilient crypto tools
- El Salvador split its BTC reserves across 14 separate addresses for added protection
Ethereum Also Eyes Quantum-Safe Architecture
Ethereum co-founder Vitalik Buterin has stressed that quantum resistance is a prerequisite for any blockchain seeking long-term independence. He has outlined standards for protocols to remain secure even under century-scale quantum pressure.
For now, Wood’s move reflects a broader institutional pivot: gold is reclaiming its role as the default hedge, while Bitcoin faces deeper scrutiny over its technological durability in a post-quantum world.
