The recent participation of Morgan Stanley in the US spot bitcoin ETF market has been seen by many as a significant catalyst for ending the current crypto bear market, given the vast distribution power of the company's $8 trillion wealth management network. However, according to Blockstream CEO Adam Back, this process will not be as rapid as anticipated. Back, an early contributor to the Bitcoin community, believes that while bitcoin ETFs are a crucial development for positive market signals, institutional adoption is a slow process.
"I think what people may have miscalculated is that institutional adoption is very slow," Back stated in an interview with Coindesk. He emphasized that investors do not make overnight decisions and that a build-up of investment could take up to a year or even 18 months. Back also noted that the regulatory environment, particularly in the US, has improved under the current presidency, which has encouraged other jurisdictions to follow suit.
The introduction of bitcoin ETFs has the potential to transcend administrative changes, with major financial institutions like BlackRock and Morgan Stanley now having a vested interest in defending their bitcoin-related businesses. 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. While acknowledging the concerns surrounding quantum technology, Back believes that institutions will be more systematic in assessing and mitigating risks, including the potential threat posed by quantum computing.