The recent entry of Morgan Stanley into the US spot bitcoin ETF market has been perceived by some as a catalyst to end the current crypto bear market, given the vast distribution power of the Wall Street wirehouse's $8 trillion advisory network. However, Blockstream CEO Adam Back, an early contributor to the Bitcoin community, suggests that the process will be slower than expected. Back notes that while bitcoin ETFs are a significant development, institutional adoption is a gradual process.
He emphasizes that investors do not make overnight decisions, and a build-up of investment could take up to a year or 18 months. Founded in 2014, Blockstream offers self-custody wallets and other services to retail and institutional clients.
Back also highlights the impact of regulatory influences, including the crypto-friendly stance of the current US presidency, which has introduced a new legislative framework for crypto and launched its own token shop. The establishment of bitcoin ETFs has the potential to transcend administrations and defend the business interests of providers like BlackRock and Morgan Stanley.
Additionally, Back discusses the cyclical nature of bitcoin's price, driven by the quadrennial halving event, and the potential for institutional flows to drive market strength. He also addresses concerns about quantum computing's potential impact on Bitcoin's cryptography, noting that institutions are more systematic about risk and may be paying attention to the recent discussions about quantum technology.