Blockstream CEO: The inflow of institutional funds into Bitcoin is slower than expected, and building positions may take 12 to 18 months

Some observers view Morgan Stanley's entry into the U.S. spot btc-42">Bitcoin ETF earlier this month as a catalyst to end the current crypto bear market, citing the large distribution capability of the Wall Street giant's $8 trillion wealth advisory network. However, Blockstream CEO and early Bitcoin community contributor Adam Back stated that "it won't happen that quickly."

Back was recently speculated by The New York Times to be the anonymous Bitcoin creator Satoshi Nakamoto, which he denied. Back indicated that from a positive market signal perspective, the Bitcoin ETF could be the most significant development in recent times, even more important than a pro-crypto U.S. government, but this process is slower than most people realize.

Back stated, "I think one thing people might be miscalculating is that institutional adoption is very slow. So the ETF has been bought, but when BlackRock suggested allocating 2% to 4% in its general stock portfolio, fund managers had not done that yet. They will, but slower than people expect." He mentioned that investors will not rush in overnight, and the accumulation process could take a year or even 18 months.

Regarding prices, Back noted that the cyclical nature of Bitcoin's four-year halving cycle needs to be considered. He pointed out that even if some commentators believe the four-year cycle is breaking down, "people expect it to happen, so they sell to make it actually happen," and a decline could still occur. This logic will only change when people see the market strengthen, which is currently manifesting in the form of institutional capital inflows.

Back stated that regarding recent comments about the accelerated development of quantum computing hardware potentially threatening Bitcoin's cryptography, institutions are more systematic in risk management and will focus on tail risks, while retail investors view it as a distant future risk.