The recent participation of Morgan Stanley in the US spot bitcoin ETF has been viewed by some as a pivotal moment that could signal the end of the current crypto bear market, thanks to the vast distribution network of the company's $8 trillion wealth management division. However, Blockstream CEO Adam Back cautions that the process is slower than most people think. Back, an early contributor to the Bitcoin community, believes that while bitcoin ETFs are a crucial development for positive market signals, their impact will not be immediate.
In an interview with Coindesk, he emphasized that institutional adoption is a gradual process, often taking a year or even 18 months to materialize. Back also highlights the significance of regulatory influences, citing the improved 'open-for-business' framework in the US under the current presidency, which has encouraged other jurisdictions to follow suit.
The establishment of bitcoin ETFs, he notes, has the potential to transcend administrations and defend the interests of major providers like BlackRock and Morgan Stanley. Additionally, Back discusses the cyclical nature of bitcoin's pricing, driven by the quadrennial halving event, and addresses concerns about quantum computing's potential impact on Bitcoin's cryptography, suggesting that institutions are more likely to consider and prepare for such risks.