Jan van Eck, CEO of VanEck, expressed concerns about long-term technological risks facing Bitcoin, including quantum threats and pervasive transparency.

He warned that insufficient cryptographic protections could undermine the asset's long-term viability for institutional holders and funds.

Technological concerns

Van Eck listed three specific vulnerabilities: susceptibility to quantum computing, pervasive transaction visibility, and potentially inadequate encryption standards across the network.

He noted that the VanEck fund would consider exiting its BTC holdings if the underlying technology proves unsound for sustained custody and institutional use.

«Every movement in the Bitcoin network is visible to everyone»

According to van Eck, some early investors are reallocating capital toward privacy-focused alternatives such as Zcash, seeking stronger transactional confidentiality features.

Market drivers

He added that markets are reacting to expectations of a forthcoming quantum era, to reduced on-chain activity after the recent halving, and to heightened privacy demand.

Growing interest in transaction privacy, he said, is shaping investor decisions and prompting a reevaluation of portfolio exposure to publicly transparent blockchains.

VanEck's remarks contribute to an ongoing debate about whether current blockchain cryptography will remain resilient against future computational advances and adversaries.