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 capabilities of the Wall Street wirehouse's $8 trillion wealth management network. However, Blockstream CEO Adam Back has a more cautious outlook, stating that the process of institutional adoption is slower than most people anticipate. In an interview with Coindesk, Back noted that while bitcoin ETFs are a significant development, it takes time for fund managers to adjust their portfolios.
He estimates that a build-up of investment could take up to a year or 18 months. Back also pointed out that the regulatory environment, particularly in the US, has improved under the current presidency, with the introduction of a new legislative framework for crypto and the launch of a token shop.
The establishment of bitcoin ETFs, however, has the potential to transcend administrations and defend the interests of businesses involved. Additionally, Back 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 conceded that institutions are more systematic about risk and may be paying attention to the potential risks associated with quantum technology.