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 has a more cautious outlook, stating that institutional adoption is a slow process.
Back, an early contributor to the Bitcoin community and rumored to be the pseudonymous creator of Bitcoin, Satoshi Nakamoto, believes that while bitcoin ETFs are a significant development, their impact will not be immediate. In an interview with Coindesk, Back explained that institutional investors do not make sudden decisions, and a buildup of investment could take up to a year or 18 months.
He also pointed out that fund managers have not yet allocated the recommended 2-4% of their portfolios to bitcoin, despite BlackRock's suggestion to do so. The arrival of institutional investors, including sovereign wealth funds and companies like MicroStrategy, will eventually overwhelm sellers, driving up the price of bitcoin. Back also discussed the potential impact of quantum computing on bitcoin's cryptography, stating that while it is a concern, institutions are more systematic about risk and will plan for potential threats. The current US presidency has introduced a new legislative framework for crypto, which has encouraged other countries to follow suit, and the establishment of bitcoin ETFs has given the industry new allies in companies like BlackRock and Morgan Stanley.