The recent entry of Morgan Stanley into the US spot bitcoin ETF market has been viewed by some as a pivotal moment that could bring an end to the current crypto bear market, thanks to the vast distribution network of the Wall Street wirehouse's $8 trillion wealth management division. However, Blockstream CEO Adam Back has cautioned that this process will take longer than anticipated. Back, a renowned cryptographer and early contributor to the Bitcoin community, believes that while bitcoin ETFs are a significant development, institutional adoption is a slow process.
In an interview with Coindesk, Back stated that investors do not immediately invest in the market, and a buildup of investment could take up to a year or 18 months. He also pointed out that the recent regulatory environment in the US, which has been more crypto-friendly under the current presidency, has encouraged other countries to follow suit.
Back noted that the establishment of bitcoin ETFs has the potential to transcend administrations and that companies like BlackRock and Morgan Stanley will defend their business interests in the bitcoin market. Additionally, he discussed the cyclical nature of bitcoin's price, driven by the quadrennial halving event, and the potential impact of quantum computing on the market.