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 Wall Street wirehouse's $8 trillion wealth management network. However, Blockstream CEO Adam Back, an early contributor to the Bitcoin community, has cautioned that the process will take longer than anticipated. Back believes that while bitcoin ETFs are a significant development, institutional adoption is slower than most people realize, and it may take up to a year or 18 months for investors to fully commit.
He notes that fund managers have not yet allocated the recommended 2-4% of their portfolios to bitcoin, but this will happen gradually. The Trump administration's crypto-friendly stance has also contributed to a more favorable regulatory environment, but Back points out that the established bitcoin ETFs have the power to transcend administrations. He also discusses the cyclical nature of bitcoin's price, driven by the quadrennial halving event, and the potential impact of quantum computing on the market.
According to Back, institutional investors are more systematic about risk and will consider potential threats, such as quantum computing, when making investment decisions.