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 massive distribution power of the company's $8 trillion wealth management network. However, Blockstream CEO Adam Back believes that the process will take longer than anticipated.
Back, an early contributor to the Bitcoin community, stated that while bitcoin ETFs are a significant development, institutional adoption is a slow process. He explained that even when major companies like BlackRock recommend allocating 2-4% of their portfolio to bitcoin, fund managers may not act immediately. This build-up of investment could take up to a year or 18 months, according to Back.
He also noted that the regulatory environment, particularly in the US, has improved under the current presidency, which has encouraged other countries to follow suit. The introduction of bitcoin ETFs has the potential to transcend administrations and defend the interests of businesses like BlackRock and Morgan Stanley.
Additionally, Back discussed 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 emphasized that institutions are more systematic about risk and will consider potential threats, such as quantum computing, when making investment decisions.