The Ethereum Foundation has launched a dedicated Post-Quantum (PQ) cryptography team, backed by $2 million in funding, signaling a strategic shift to treat quantum computing as an imminent infrastructure threat rather than a distant theoretical problem. This move comes as prominent investor Kevin O'Leary warns that quantum concerns are limiting institutional exposure to Bitcoin to a maximum of 3% of their portfolios.
The quantum threat is framed as a present market risk, not a future technical problem. The danger lies in the "harvest-now, decrypt-later" attack vector, where adversaries could collect exposed public keys today and decrypt them later once a sufficiently powerful quantum computer exists. A Deloitte report estimates that roughly 4 million Bitcoin (25% of usable supply) sit in addresses vulnerable to such attacks via Shor's algorithm.
Upgrading blockchains to quantum-resistant cryptography is not a simple fix. Researchers estimate that migrating Bitcoin could require up to 75 days of downtime, or over 300 days if operating at reduced capacity, creating massive ripple effects across ETFs, custody, banking, and global markets. The European Commission has mandated that by 2030, critical infrastructure within the bloc must adopt quantum-resistant encryption, with a full transition targeted for 2035.
Kevin O'Leary highlighted that the market collapse in October 2025 led to a "deep cleansing" of the ecosystem, with most altcoins dropping up to 90%. Institutional interest has now narrowed to what he calls the "two-girl dance": Bitcoin and Ethereum. He asserts that despite a bullish long-term view, institutions will not exceed the 3% exposure threshold until total security against quantum threats is guaranteed, a concern echoed by firms like Jefferies which have begun removing Bitcoin from model portfolios.
The article, presented as an opinion by David Carvalho of Naoris Protocol, argues that the combination of AI and quantum computing creates a scenario where machine-scale attacks outpace human governance. The Ethereum Foundation's proactive investment is portrayed as a watershed moment, indicating that cryptographic disruption could arrive far sooner than many in the industry assume.
