Billionaire investor Kevin O'Leary stated that quantum computing risks are preventing institutional investors from expanding Bitcoin holdings beyond roughly 3%. He described the current institutional stance as "cautious waiting," with long-term funds and large portfolio managers seeking clarity on how Bitcoin's cryptographic architecture will be hardened against quantum threats. O'Leary's comments come as concrete moves on both the investment and protocol sides signal growing urgency around the issue.
Jefferies Strategist Drops 10% Bitcoin Allocation
Christopher Wood, Head of Global Equity Strategy at Jefferies, removed a 10% Bitcoin slice from his model portfolio, citing uncertainty over how quantum risks will be mitigated. The decision marks a notable shift: Wood had previously maintained a bullish crypto allocation. His move reflects broader institutional unease, with many waiting for a clear quantum-defense roadmap before increasing exposure.
BIP-360: P2MR Outputs to Shield Public Keys
Bitcoin developers have submitted BIP-360 to the official Bitcoin Improvement Proposal repository. The proposal introduces a new output type called P2MR (Pay-to-Merkle-Root), designed to reduce exposure of existing public-key architecture and create a more resilient structure against quantum attacks. By allowing users to commit to a Merkle root instead of revealing a full public key upfront, P2MR makes it harder for quantum computers to derive private keys from on-chain data. The proposal is currently in the evaluation phase.
O'Leary's warning, Wood's portfolio adjustment, and the BIP-360 development collectively highlight that quantum computing is no longer a distant hypothetical for Bitcoin. Institutional capital is waiting — not for an answer to "if" quantum becomes a threat, but for "how" the network will defend itself.