Adam Back: Institutional Bitcoin Adoption Slower Than Expected, Position Building May Take 12-18 Months

Gate News message, April 29 — Blockstream CEO Adam Back said institutional adoption of Bitcoin is proceeding more slowly than many observers expect, cautioning that position building could take 12 to 18 months. While some market watchers view Morgan Stanley's entry into the U.S. spot Bitcoin ETF market as a potential catalyst to end the current crypto bear market, Back argued the process will be more gradual.

Back noted that although Bitcoin ETFs have been purchased, fund managers have not yet acted on BlackRock's recommendation to allocate 2% to 4% of general equity portfolios to Bitcoin. "They will do it, but slower than people expect," Back said, adding that investors will not rush in overnight. He emphasized that institutional adoption is "very slow" despite positive market signals.

On price dynamics, Back highlighted the importance of Bitcoin's four-year halving cycle. He noted that even if some commentators believe the cycle is breaking, market expectations can become self-fulfilling. Back also pointed out that institutions take a more systematic approach to risk management, focusing on tail risks such as potential quantum computing threats, while retail investors tend to view such risks as distant future concerns.