Billionaire Entrepreneur Kevin O’Leary Explains Why Institutional Investors Aren’t Growing Their Bitcoin Positions!

Billionaire entrepreneur and investor Kevin O’Leary said that security risks posed by quantum computers are preventing institutional investors from growing their Bitcoin (BTC) positions. O’Leary stated that institutions are reluctant to increase their Bitcoin allocations above 3% until quantum-related risks are clearly resolved.

According to O’Leary, the general approach on the institutional side is one of “cautious waiting.” Long-term funds and large portfolio managers, in particular, want to see more clarity on how Bitcoin’s security architecture will be protected in the quantum age.

A similar move came from Christopher Wood, Jefferies’ Head of Global Equity Strategy. Wood announced that he had removed the 10% Bitcoin allocation from his model portfolio, citing uncertainties surrounding quantum security as the reason. These developments indicate that the “quantum threat,” a frequently discussed topic in the crypto market, may now be priced in more seriously.

On the other hand, Bitcoin developers have included a proposal called BIP-360, considered a solution to these risks, in the official BIP GitHub repository. Thus, BIP-360 has entered the evaluation process for possible future updates.

The proposal aims to reduce the exposure of the existing public key architecture by adding a new output type called P2MR, thereby creating a more resilient structure against quantum attacks.

*This is not investment advice.