Jefferies’ Chris Wood Exits Bitcoin Entirely; Cites ‘Existential’ Quantum Threat
The ‘GREED & fear’ strategist banked a 325% gain but warned that quantum advances threaten 50% of supply, rotating capital into gold.
Christopher Wood, the Global Head of Equity Strategy at Jefferies and a prominent institutional bull, has liquidated his entire 10% Bitcoin allocation. In a note to clients released Friday, Wood cited accelerating risks from quantum computing as a potential "existential threat" to the network’s cryptographic security.
The strategist, whose widely read GREED & fear newsletter guides billions in pension fund capital, had maintained a Bitcoin position since December 2020. He has now reallocated the capital evenly between physical gold and gold-mining stocks (5% each).
The Quantum ‘Receipt’
Wood’s reversal pivots on new data regarding the timeline of "cryptographically relevant quantum computers" (CRQCs). Citing research from Chaincode Labs, the note highlights that 20-50% of the circulating Bitcoin supply, roughly 4 to 10 million BTC, relies on older public key standards (P2PK) vulnerable to quantum decryption.
"While GREED & fear does not believe that the quantum issue is about to hit the Bitcoin price dramatically in the near term, the store of value concept is clearly on less solid foundation from the standpoint of a long-term pension portfolio."
Institutional Context: A Profit-Taking Pivot
This is a strategic exit, not a panic sell. Wood’s model portfolio banked a 325% gain on its Bitcoin position since inception, significantly outperforming gold bullion (+145%) over the same period.
However, the shift signals a fracturing of the "digital gold" narrative at the institutional level. By rotating into physical gold, Wood is effectively betting that quantum advancements will force risk-averse allocators back to analog stores of value. The move challenges the assumption that the Bitcoin network can upgrade its cryptographic defenses (via soft forks) faster than quantum capabilities can scale.
The market response was muted but cautious, with Bitcoin stalling as traders digested the implications of a major traditional finance (TradFi) strategist citing technical obsolescence rather than regulation as the bear case.
