The recent entry of Morgan Stanley into the US spot bitcoin ETF market has been seen by some as a catalyst to end the current crypto bear market, given the vast distribution power of the company's $8 trillion wealth management network. However, Blockstream CEO Adam Back cautions that the process is slower than anticipated. In an interview with Coindesk, Back noted that while bitcoin ETFs are a significant development, institutional adoption takes time. "I think what people may have miscalculated is that institutional adoption is very slow," he said, adding that even when large firms like BlackRock recommend a 2-4% allocation to bitcoin, fund managers are yet to act, and this process can take up to a year or 18 months.
Back emphasized that investors do not rush into investments overnight and that a build-up of interest can take considerable time. He also pointed to the positive regulatory environment, particularly in the US, which has introduced a new legislative framework for crypto and even launched its own token shop.
The presence of bitcoin ETFs, according to Back, has the power to transcend political administrations and has garnered support from major financial institutions like BlackRock, Morgan Stanley, and Fidelity, which will defend their bitcoin-related businesses. Additionally, Back discussed the cyclical nature of bitcoin's price, driven by the quadrennial halving event, and the potential impact of quantum computing on bitcoin's cryptography, noting that while it may be a concern for institutions, it is not an immediate threat.