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, according to Blockstream CEO Adam Back, this process will take longer than anticipated. Back, an early contributor to the Bitcoin community and rumored to be the pseudonymous creator of bitcoin, Satoshi Nakamoto, believes that institutional adoption is a slow process. In an interview with Coindesk, he stated that while ETFs are a positive market signal, it may take up to a year or 18 months for investors to fully adapt.
Back's company, Blockstream, offers self-custody wallets and other services to retail and institutional clients. He also co-founded BSTR, a bitcoin treasury company. The impact of government regulations on the industry was also discussed, with Back noting that the current US presidency has introduced a new legislative framework for crypto and launched its own token shop.
This has encouraged other jurisdictions to follow suit. The establishment of bitcoin ETFs has given the industry new allies, including Black Rock and Morgan Stanley, which will defend their business interests.
Another factor influencing bitcoin's price is its cyclical nature, driven by the quadrennial halving event. While some commentators believe this cycle may be breaking, Back thinks that institutional flows, such as ETFs and sovereign investments, will eventually overwhelm sellers.
He also addressed concerns about quantum computing's potential to break Bitcoin's cryptography, stating that institutions are more systematic about risk and will consider even small tail risks. Overall, Back remains optimistic about the future of bitcoin, citing the growing strength of institutional flows and the industry's new allies.