The recent entry of Morgan Stanley into the US spot bitcoin ETF market has been seen by some as a catalyst to end the current crypto bear market, given the vast 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 expected.
In an interview with Coindesk, Back stated that while bitcoin ETFs are a significant positive market signal, even more so than a pro-crypto US administration, institutional adoption takes longer than most people realize. He noted that investors do not immediately invest, and a build-up of investments could take up to a year or 18 months. Back also highlighted the impact of regulatory influences, such as the crypto-friendly stance of the current US presidency, which has encouraged other jurisdictions to follow suit. Additionally, he discussed the cyclical nature of bitcoin's price, driven by the quadrennial halving event, and the potential for institutional flows to eventually overwhelm sellers.
Back 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.