The recent entry of Morgan Stanley into the US spot bitcoin ETF market has sparked hopes of an end to the current crypto bear market, thanks to the company's vast $8 trillion wealth management network. However, Blockstream CEO Adam Back cautions that institutional adoption is a slow process. While bitcoin ETFs are a significant development, Back notes that it takes time for fund managers to allocate investments, and a build-up of institutional investment could take up to a year or 18 months.
He believes that investors do not make overnight decisions, and a tailwind of slow but steady investment is more likely. Back also discusses the impact of regulatory frameworks, the cyclical nature of bitcoin's price, and the potential effects of quantum computing on the market.
He emphasizes that institutional investors are more systematic about risk and will consider potential threats, such as quantum computing, when making investment decisions.