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 will be slower than anticipated. Back, an early contributor to the Bitcoin community, believes that while bitcoin ETFs are a significant development, institutional adoption takes longer than most people realize. In an interview with Coindesk, he stated that even with recommendations from major institutions like BlackRock, the actual allocation of funds takes time, often up to a year or 18 months.
Back also notes that the regulatory environment, particularly in the US, has improved under the current presidency, which has encouraged other jurisdictions to follow suit. The establishment of bitcoin ETFs, he argues, has the power to transcend political administrations and has garnered support from major financial institutions, which will defend their business interests in the crypto market. Additionally, Back discusses the cyclical nature of bitcoin's price, driven by the quadrennial halving event, and the potential impact of quantum computing on the cryptocurrency's cryptography. He emphasizes that while quantum technology may pose a risk, institutions are more systematic about risk management and will consider even small tail risks when making investment decisions.