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 firm's vast $8 trillion wealth management network. However, Blockstream CEO Adam Back believes that the process will be slower than anticipated. Back, an early contributor to the Bitcoin community, stated that bitcoin ETFs are a crucial development for the market, but their impact will not be immediate. He noted that institutional adoption is a slow process, and investors do not make overnight decisions.
The build-up of investments can take up to a year or 18 months. Back also discussed the regulatory influence on the industry, citing the crypto-friendly stance of the current US presidency and the launch of its own token shop. He believes that the established bitcoin ETFs have the power to transcend administrations and that companies like Black Rock and Morgan Stanley will defend their business interests in the bitcoin market. Additionally, Back touched on the cyclical nature of bitcoin's price, driven by the quadrennial halving event, and the potential for a price slide due to market expectations.
He also addressed concerns about quantum computing's potential impact on Bitcoin's cryptography, stating that institutions are more systematic about risk and will consider even small tail risks. Overall, Back sees a positive trend in the market, driven by institutional flows and the growing ability of investors to buy bitcoin in different market conditions.