The recent entry of Morgan Stanley into the US spot bitcoin ETF market has been seen by some as a catalyst for ending the current crypto bear market, thanks to the vast distribution power of the company's $8 trillion wealth management network. However, Blockstream CEO Adam Back cautions that this process will take longer than anticipated. Back, an early contributor to the Bitcoin community, believes that bitcoin ETFs are a crucial development for positive market signals, but institutional adoption is a slow process.
"I think what people may have miscalculated is that institutional adoption is very slow," he said in an interview with Coindesk. According to Back, investors do not immediately invest, and a build-up of investments could take up to a year or 18 months.
He also notes that the regulatory environment has improved, with the US presidency introducing a new legislative framework for crypto. The establishment of bitcoin ETFs has the power to transcend administrations, with major financial institutions like BlackRock and Morgan Stanley defending their business interests in the bitcoin market.
Back also 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. He believes that institutional investors are more systematic about risk and will consider potential risks, including the 1% risk posed by quantum computing.