Overview
- Jefferies’ Christopher Wood removed a 10% Bitcoin position from his 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 public keys in hours or days, calling it a threat to Bitcoin’s security and store-of-value case.
- Jefferies pointed to vulnerable holdings including an estimated 600,000 to 1.1 million Satoshi‑era P2PK coins with exposed public keys, with separate estimates of 2 to 5 million lost coins and additional exposure from address reuse.
- The note outlined a divisive set of potential responses, including proposals to burn vulnerable coins or pursue changes via a fork, which critics argue would violate property rights.
- Analysts say the decision signals quantum risk is entering mainstream asset-allocation conversations, prompting institutions to reassess crypto exposure.