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Jefferies Drops 10% Bitcoin Allocation on Quantum Security Fears, Shifts to Gold

The move elevates quantum‑computing risk from niche concern to mainstream allocation factor.

Overview

  • Global equity strategist Christopher Wood removed Bitcoin from Jefferies’ model portfolio, reallocating 5% to physical gold and 5% to gold‑mining stocks.
  • Wood cited the prospect of cryptographically relevant quantum computers that could derive private keys from exposed public keys, jeopardizing Bitcoin’s long‑term store‑of‑value case.
  • Estimates of potentially vulnerable holdings vary widely, ranging from hundreds of thousands of older P2PK coins to several million BTC, with some reports citing upper bounds near 10 million.
  • Developers and infrastructure leaders dispute near‑term danger, pointing to decades‑long timelines and feasible post‑quantum signature upgrades, while governance questions over any transition remain contentious.
  • The decision signals broader institutional reassessment of crypto exposure, with Wall Street views diverging as firms such as ARK emphasize diversification benefits and disclosures note quantum risk as a long‑term consideration.