Christopher Wood, a strategist at Jefferies, eliminated his 10% Bitcoin allocation from his main model portfolio. The official spokesperson made this decision due to the quantum computing risk for the long-term security of digital assets. According to Bloomberg, this position was replaced by a combination of physical gold and mining company shares.
Likewise, Wood replaced his position in the digital asset with well-known traditional safe havens. The strategist had maintained his allocation since 2020 continuously until this very recent adjustment in the portfolio. However, the accelerated technological progress generates reasonable doubts about the current cryptography that protects all the users. Thus, the report confirms a significant change in Jefferies’ investment strategy during this year.
On the other hand, institutional investors fear that advanced machines will manage to crack public keys. This scenario would compromise the integrity of rewards from mining and balances in personal wallets. Furthermore, capital seeks preventive solutions against emerging threats that could arrive much sooner than originally expected. Therefore, the concept of “digital gold” faces its greatest technical and historical challenge today.
Technical challenges that could redefine the confidence of large pension funds
In addition, analysts like Luke Gromen have shown caution toward the current technological volatility. Consulting firms warn about latent threats to traditional public-key encryption systems in the global financial sector. Therefore, the institutional market prioritizes absolute security over the potential returns offered by disruptive technologies today. Likewise, the migration toward alternatives resistant to advanced processing becomes a central topic of debate.
Nonetheless, experts like Nic Carter point out that capital is very concerned right now. Many allocators question Bitcoin’s store of value case if quantum development timelines are compressed in the future. On the other hand, the “harvest now, decrypt later” technique represents a real and dangerous threat. Since the theft of encrypted data for future attacks is a strategy that worries analysts deeply. In this way, technological vulnerability directly influences the allocation of global assets.
Will blockchain technology be able to resist the unstoppable advance of quantum processing power?
Therefore, developers of the blockchain consider that the danger is not something immediate at all. Adam Back maintains that the system has decades to adapt to new algorithms of digital signatures that are safer. Nevertheless, the perception of risk already influences decisions of investment from the large international funds in 2026. So, the probability of a successful attack during this decade is still considered quite low.
However, the impact on the market is reflected in the flow toward physical gold. Therefore, the Bitcoin price could face institutional resistance if these technical concerns become rapidly generalized among investors. Portfolio managers seek assets with proven stability in the face of technological leaps that are totally unknown. In this way, the competition to be the ultimate store of value in 2026 intensifies.
