Why it matters: Google’s announcement of its new Willow quantum chip has sparked the largest decline in BlackRock’s Bitcoin ETF in four months, despite recent strong inflows. As reported by Coindesk, the development raises questions about cryptocurrency’s long-term security against quantum computing threats.
The Big Picture: While BlackRock’s iShares Bitcoin Trust (IBIT) received $398.24 million in inflows on December 9, market reaction to Google’s quantum computing breakthrough has created significant turbulence:
- IBIT sees largest drop in 4 months
- Quantum chip performs 5-minute calculations that would take supercomputers 10 septillion years (CNBC) And much longer for the best desktop computers that we little people use.
- Mixed investor response across major Bitcoin ETFs
Market Impact: The quantum computing announcement has created divergent paths for Bitcoin ETFs:
- BlackRock IBIT: $398.24M inflows
- Fidelity FBTC: $175.47M inflows
- Grayscale GBTC: $24.44M outflows
- ARK ARKB: $34.30M outflows
Technical Context: Google’s Willow chip, while revolutionary, faces significant limitations:
- Only 105 qubits versus millions needed for practical use
- Requires extreme cooling
- No immediate real-world applications
Looking Forward: Despite quantum computing fears, institutional interest in Bitcoin ETFs remains strong, with IBIT accumulating approximately $15 billion in inflows since January 2024.
