NewsGlobalJefferies' Christopher Wood Exits Bitcoin, Returns to Gold Amid Quantum Computing ConcernsJefferies' Christopher Wood Exits Bitcoin, Returns to Gold Amid Quantum Computing Concerns
Jefferies strategist Christopher Wood has completely exited his 10% Bitcoin allocation due to quantum computing security threats, reallocating equally to gold and gold mining stocks. Research indicates 20-50% of circulating bitcoins could become vulnerable to quantum computer attacks, prompting concerns about Bitcoin's long-term store of value proposition for institutional investors.
*this image is generated using AI for illustrative purposes only.
Christopher Wood, the global strategist at Jefferies, has made a significant portfolio shift by completely liquidating his Bitcoin holdings and returning to traditional safe-haven assets. The move comes in response to emerging quantum computing threats that could compromise Bitcoin's cryptographic security foundations.
Quantum Computing Threat Drives Strategic Shift
The catalyst for Wood's dramatic reversal stems from research conducted by Chaincode Labs, which highlights a potentially existential risk to the Bitcoin network. The research estimates that between 20% and 50% of all bitcoins currently in circulation could become vulnerable to theft once cryptographically relevant quantum computers (CRQCs) become operational.
| Risk Assessment: | Details |
|---|---|
| Vulnerable Bitcoin Supply: | 20-50% of circulation |
| Estimated Volume: | 4-10 million BTC |
| Threat Source: | Cryptographically Relevant Quantum Computers |
| Research Source: | Chaincode Labs |
Wood explained his reasoning in his weekly newsletter, stating: "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."
Portfolio Reallocation Strategy
The strategist is removing his entire 10% Bitcoin allocation, redistributing the capital equally between physical gold and gold mining stocks. This represents a complete reversal of his previous cryptocurrency positioning.
| Original Bitcoin Positions: | Details |
|---|---|
| First Allocation: | 5% on December 17, 2020 |
| Entry Price: | $22,779.00 |
| Second Allocation: | 5% on November 4, 2021 |
| Entry Price: | $61,365.00 |
| New Allocation: | 0% (complete exit) |
| New Allocation Strategy: | Percentage |
|---|---|
| Gold Bullion: | 5% |
| Gold Mining Stocks: | 5% |
| Bitcoin: | 0% |
Performance Comparison and Market Context
Despite the strategic shift, Wood acknowledged Bitcoin's superior performance since his initial investment. Bitcoin has gained 325% since December 17, 2020, significantly outpacing gold bullion's 145% return over the same period. However, the long-term security concerns have outweighed short-term performance considerations in his decision-making process.
Gold's Strategic Positioning
Wood views the quantum computing threat to Bitcoin as fundamentally positive for gold's investment thesis. He emphasized gold's historical resilience, describing it as "the historically stress tested store of value." Additionally, he highlighted gold's role as a hedge against escalating geopolitical risks.
Gold's recent performance has been particularly strong, with the precious metal rallying 66.50% in 2025 and already gaining approximately 7% in the current calendar year.
Long-term Investment Implications
The shift reflects broader institutional concerns about cryptocurrency's long-term viability in the face of advancing quantum computing technology. While quantum computing threats have been discussed theoretically for years, accelerating development timelines have moved the conversation from speculation to active preparation among institutional investors.
Wood's decision underscores the importance of considering technological risks when evaluating digital assets for long-term institutional portfolios, particularly pension funds and other entities requiring stable, secure stores of value over extended periods.
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