A major shift in institutional thinking around digital assets is emerging as concerns over quantum computing risks move from theory into portfolio decisions. A leading strategist at Jefferies has removed Bitcoin entirely from a long-standing model portfolio, signaling growing unease among long-term investors about the cryptocurrency’s future resilience.
Christopher Wood, the strategist behind Jefferies’ widely followed “Greed & Fear” framework, has cut a 10% Bitcoin allocation to zero, reallocating that exposure into physical gold and gold mining equities. The decision reflects fears that rapid progress in quantum computing could eventually threaten the cryptographic foundations that secure Bitcoin wallets and transactions.
Wood warned that if “cryptographically relevant” quantum machines arrive earlier than expected, they could theoretically derive private keys from public ones, undermining confidence in Bitcoin as a store of value for pension-style portfolios. This concern is increasingly shared by institutional allocators who are sensitive to long-term, low-probability but high-impact risks.
Bitcoin advocate Nic Carter;
The move highlights a broader trend of investors reassessing Bitcoin versus gold in multi-cycle portfolios. While Bitcoin developers argue the network has decades to adapt to post-quantum cryptography, some macro-focused investors prefer assets without technological dependencies.
As quantum computing advances remain uncertain, this shift underscores a key point: perceived future risks can matter as much as present fundamentals when large institutions decide where to allocate capital.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.