Share this article
Jefferies strategist Christopher Wood drops bitcoin for gold on quantum computing concern
Christopher Wood, Jefferies' global head of equity strategy, swapped a 10% bitcoin allocation with gold on concern quantum computing could weaken bitcoin’s security case.
Updated Jan 16, 2026, 2:51 p.m. Published Jan 16, 2026, 12:53 p.m.
Make us preferred on Google
What to know:
- Christopher Wood, Jefferies' global head of equity strategy, removed a 10% bitcoin allocation from his model portfolio, citing long-term security concerns posed by advances in quantum computing.
- In his Greed & Fear newsletter, Wood said he split the allocation into 5% physical gold and 5% gold-mining stocks.
- While many developers say quantum computers do not pose an immediate threat to bitcoin, growing attention and funding for post-quantum tools show that long-term risks are starting to shape investment decisions.
Christopher Wood, Jefferies’ global head of equity strategy, removed a 10% allocation to bitcoin from his model portfolio, saying advances in quantum computing could eventually weaken the Bitcoin blockchain’s security and, by extension, its appeal as a long-term store of value.
Wood reported the change in his “Greed & Fear” newsletter, as reported by Bloomberg, and replaced the bitcoin with a 5% allocation to physical gold and 5% to gold-mining stocks.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Wood added bitcoin to the model portfolio in late 2020 and increased exposure in 2021, arguing it could serve as an alternative to gold as governments pumped stimulus into the economy. He is now leaning back toward assets with longer track records.
The concern is simple. Bitcoin relies on cryptography to secure wallets and authorize transfers. Current computers cannot realistically break those protections. But future machines exploiting features of quantum mechanics could make it easier to work backward from public information to the private keys that are used to authorize transactions.
Read more: Quantum computing threatens the $2 trillion Bitcoin network. BTQ Technologies says it has a defense.
Many bitcoin developers say the threat is not near-term. Some, including longtime developer Jameson Lopp, have argued that quantum risk remains years away and any serious transition would take time.
“No, quantum computers won't break Bitcoin in the near future,” Lopp said in December, adding that making protocol changes and moving funds to new formats “could easily take 5 to 10 years.”
The topic has also begun to attract funding. This week, Project Eleven said it raised $20 million to build post-quantum tooling for blockchains and institutions, including readiness assessments and migration testing.
Likewise, Wood’s shift is not a not signal that quantum computing is an immediate threat to bitcoin. It does show that long-term security questions are beginning to influence how some investors think about allocations.
UPDATE (Jan. 16, 13:52 UTC): Changes lead image.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold
Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash.
What to know:
- During recent geopolitical tensions, Bitcoin lost 6.6% of its value, while gold rose 8.6%, demonstrating bitcoin's vulnerability in times of market stress.
- Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash, contrary to its reputation as a stable digital asset.
- Gold remains the preferred hedge for short-term risks, while bitcoin is better suited for long-term monetary and geopolitical uncertainties that unfold over years.
Top Stories
