The recent involvement of Morgan Stanley in the US spot bitcoin ETF market has been seen by some as a catalyst for ending the current crypto bear market, thanks to the immense distribution power of the company's $8 trillion wealth management network. However, Blockstream CEO Adam Back has cautioned that the process will be slower than anticipated. Back, an early contributor to the Bitcoin community, noted that while bitcoin ETFs are a significant development, institutional adoption is a gradual process that takes longer than most people realize. In an interview with Coindesk, Back stated that investors do not immediately invest, and a build-up of investment could take up to a year or 18 months.
He also pointed out that the US presidency has introduced a new legislative framework for crypto, which has encouraged other countries to follow suit. Additionally, the establishment of bitcoin ETFs has given the industry new allies, including BlackRock and Morgan Stanley, which will defend their business interests.
Back also 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 noted that institutions are more systematic about risk and will consider potential threats, such as quantum computing, when making investment decisions.