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, given the vast distribution power of the company's $8 trillion wealth management network. However, Blockstream CEO Adam Back cautions that the process will be slower than anticipated. Back, an early contributor to the Bitcoin community and rumored to be the cryptocurrency's pseudonymous creator, Satoshi Nakamoto, believes that while bitcoin ETFs are a significant development, institutional adoption is a gradual process. In an interview with Coindesk, Back stated that investors do not make decisions overnight, and a build-up of investment could take up to a year or 18 months.
He also noted that the regulatory environment, particularly in the US, has improved under the current presidency, which has introduced a new legislative framework for crypto and launched its own token shop. This, in turn, has encouraged other jurisdictions to follow suit. Back pointed out that the establishment of bitcoin ETFs has given the industry new allies, including BlackRock, Morgan Stanley, and Fidelity, which will defend their business interests and lobby against interference.
He 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. While acknowledging that institutions are more systematic about risk and may be paying attention to the potential risks posed by quantum computing, Back believes that the recent concerns about quantum doomsaying may be overstated.