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Quantum Fears Cap Institutional Bitcoin Bets at 3% as Developers Advance BIP-360

Institutions cite unresolved key-exposure risks before expanding positions.

Overview

  • Kevin O’Leary says many institutions are holding Bitcoin allocations near 3% until quantum-security questions are resolved.
  • Developers added BIP‑360 to the Bitcoin Improvement Proposal repository for review, proposing Pay‑to‑Merkle‑Root to keep public keys off‑chain until spend.
  • The BIP‑360 proposal remains unimplemented and would be a prospective hardening measure if it gains consensus.
  • Jefferies strategist Christopher Wood removed a 10% Bitcoin allocation from his model portfolio due to uncertainty over quantum mitigation.
  • Recent coverage highlights a market drawdown and a preference for Bitcoin and Ethereum as institutions shy from smaller tokens.