BlackRock Boosts IonQ Stake As Hedge Funds Rotate Into Quantum AI Names

Institutional money is moving across key quantum AI names as BlackRock lifts its IonQ position and hedge funds add exposure to Rigetti and D-Wave. New financings and ETF flows point to a tactical build-up ahead of expected government and enterprise demand in 2026.

Published: January 13, 2026 By Aisha Mohammed, Technology & Telecom Correspondent Category: Quantum AI

Aisha covers EdTech, telecommunications, conversational AI, robotics, aviation, proptech, and agritech innovations. Experienced technology correspondent focused on emerging tech applications.

BlackRock Boosts IonQ Stake As Hedge Funds Rotate Into Quantum AI Names
Executive Summary
  • BlackRock discloses a larger passive stake in IonQ via a recent SEC filing, while hedge funds increase exposure to Rigetti and D-Wave in late December and early January (SEC filings).
  • Rigetti raises fresh capital in a registered offering allocated to institutional investors, as D-Wave completes a private placement with fund participation (Reuters).
  • ETF and thematic fund flows into quantum and AI baskets pick up in December, with ARK daily trade disclosures showing incremental IonQ adds (ARK Invest trade notes).
  • Venture and strategic investors back quantum AI startups, with a late-December round extension in quantum software drawing participation from multi-strategy funds (TechCrunch).
Institutional Positioning Accelerates Across Listed Quantum AI Names Institutional investors are taking larger positions in listed quantum AI companies into year-end and the first weeks of 2026. A recent Schedule 13G/A filing shows BlackRock increasing its passive stake in IonQ to a mid-single-digit percentage, signaling continued institutional accumulation (SEC Schedule 13G/A). ARK Invest’s daily disclosures indicate December purchases of IonQ across select funds, adding incremental exposure during broader AI-led volatility (ARK daily trade notes, Dec 2025). Options market data cited by Bloomberg’s prime brokerage desk notes rising call activity in IonQ and Rigetti as hedge funds position for potential contract wins and partnership announcements in early 2026 (Bloomberg prime flows note, Jan 2026). “We are seeing a more sophisticated mix of long-only and hedged capital rotating into quantum-exposed AI names as customers pilot real workloads,” said Peter Chapman, CEO of IonQ, referencing recent investor dialogues and enterprise pipeline activity (IonQ newsroom, Jan 2026). “Institutional investors want visibility on system roadmaps and service-level commitments as they scale proofs-of-concept into production,” added Alan Baratz, CEO of D-Wave, in a recent interview discussing commercial annealing adoption (Reuters interview, Jan 2026). Capital Raises Draw Fund Participation As Balance Sheets Are Fortified On the financing front, Rigetti announced a late-December registered offering that raised roughly tens of millions of dollars from institutional investors, proceeds earmarked for advancing gate-model system performance and expanding cloud access programs (Rigetti press release, Dec 2025). In early January, D-Wave closed a private placement in the low nine figures with participation from existing and new funds, aligning capital with its hybrid solver roadmap and enterprise services expansion (D-Wave press release, Jan 2026). Executives at both companies said the new capital increases runway and supports customer delivery timelines. “The financing enhances our flexibility to execute on near-term technical milestones and deepen customer engagements,” said Subodh Kulkarni, CEO of Rigetti, outlining use of proceeds on a recent investor update (Rigetti investor update, Dec 2025). “Given strengthening demand signals, we’re aligning resources to scale software and services alongside hardware access,” noted Baratz of D-Wave, reiterating priorities for 2026 bookings growth (D-Wave press release, Jan 2026). Hedge Funds Target Quantum Software And Tooling While ETFs Add Exposure Beyond hardware, multi-strategy hedge funds have been active in quantum AI software and tooling. A late-December round extension in a quantum software startup drew participation from crossover and hedge fund investors, with proceeds directed at scaling quantum machine learning toolkits and integrating with hyperscaler ecosystems (TechCrunch, Dec 2025). On the public side, ETF flow trackers show net inflows into quantum and AI-themed funds in the final weeks of December, with iShares and Global X thematic products among vehicles seeing incremental allocations to quantum-and-AI-adjacent holdings (Reuters ETF flows, Dec 2025). For more context on where enterprise pilot demand is building, see our coverage of broader Quantum AI trends. For more on [related ai developments](/10-biggest-sovereign-ai-initiatives-projects-us-uk-japan-germany-singapore-israel-canada-saudi-2026-13-december-2024). Market researchers expect enterprise proofs-of-concept in optimization, materials, and drug discovery to expand in 2026 as hardware roadmaps tighten and software abstraction layers improve (IDC FutureScape, Dec 2025). Key Institutional Signals To Watch Into Q1 Investors are monitoring upcoming government contract awards and hyperscaler partnerships that could influence booking trajectories at listed quantum AI vendors. Analysts also point to January and February conference commentary and early 2026 earnings updates for visibility into enterprise pipeline conversion rates and backlog quality (Bloomberg research roundup, Jan 2026). The next wave of quarterly disclosures and any additional financing activity may further clarify how long-only institutions and hedge funds are sizing positions into the first half of the year (Reuters investor diary, Jan 2026). “This is becoming a fundamentals-driven stock-picking market even within quantum AI,” said a recent note from a sell-side technology strategist highlighting dispersion in roadmap execution and customer concentration risk (Financial Times markets note, Jan 2026). For ongoing context on product roadmaps and buyer behavior, follow our latest Quantum AI innovations coverage across hardware and software stacks (Gartner commentary, Dec 2025). Company and Fund Activity Snapshot Key Institutional and Hedge Fund Actions in Quantum AI
EntityActionDateSource
BlackRock and IonQBlackRock increases passive IonQ stake to mid-single-digit percentJan 2026SEC Schedule 13G/A
RigettiRegistered offering with institutional allocationsDec 2025Rigetti press release
D-WavePrivate placement with fund participationJan 2026D-Wave press release
ARK Invest and IonQARK daily disclosures show incremental IonQ addsDec 2025ARK trade notes
Thematic ETFsNet inflows into quantum and AI basketsDec 2025Reuters ETF flows
Quantum software startupRound extension with hedge fund participationDec 2025TechCrunch
References

About the Author

AM

Aisha Mohammed

Technology & Telecom Correspondent

Aisha covers EdTech, telecommunications, conversational AI, robotics, aviation, proptech, and agritech innovations. Experienced technology correspondent focused on emerging tech applications.

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Frequently Asked Questions

Which institutional investors have recently increased exposure to Quantum AI stocks?

Recent disclosures show large passive managers increasing stakes in publicly traded Quantum AI names, with BlackRock reporting a mid-single-digit percentage holding in IonQ via a Schedule 13G/A. In December, ARK Invest’s daily trade notes indicated incremental purchases in IonQ across select funds. Additionally, thematic ETFs from issuers such as iShares and Global X reported net inflows into quantum and AI baskets in late December, suggesting broader institutional allocation through index and thematic vehicles.

How are hedge funds positioning in Rigetti and D-Wave entering 2026?

Prime brokerage flow notes referenced increased call option activity and long exposure in Rigetti and D-Wave through late December and early January. Multi-strategy funds have been adding to quantum-exposed names alongside tactical hedges, anticipating near-term news on commercial contracts and partnerships. A recently completed D-Wave private placement and Rigetti’s registered offering have also provided entry points for funds seeking primary issuance allocations and improved liquidity conditions going into Q1 2026.

What capital raises have Quantum AI companies completed in the last 45 days?

Rigetti closed a registered offering in late December, raising tens of millions of dollars from institutional investors to support hardware roadmap milestones and cloud access expansion. In early January, D-Wave announced a private placement in the low nine figures with participation from existing and new funds to accelerate hybrid solver capabilities and enterprise services. These transactions improve balance sheet flexibility and help align R&D and customer delivery milestones for 2026.

Are ETFs and thematic funds influencing liquidity in Quantum AI stocks?

Yes. ETF flow trackers show net inflows into quantum and AI-themed baskets during the final weeks of December. This includes allocations by vehicles managed by issuers such as iShares and Global X, which can aggregate demand for underlying holdings like IonQ and related enablers. Thematic ETF activity improves secondary market liquidity, complements direct institutional buying, and can amplify price discovery when coupled with heightened options activity observed by prime brokerage desks.

What should investors watch for in Quantum AI during Q1 2026?

Key catalysts include government contract awards, hyperscaler integrations, and enterprise deal conversions that influence bookings and backlog quality. Investors are also monitoring earnings season commentary for proof points on system performance, service-level commitments, and customer adoption beyond pilots. Additional financings or secondary offerings could surface as companies align capital with roadmaps. Analyst notes suggest fundamentals-driven dispersion will persist, making execution milestones and customer diversification critical valuation drivers.