Adam Back explains why institutional money is slowly entering Bitcoin

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Eugene Komchuk

29.04.2026

Adam Back explains why institutional money is slowly entering Bitcoin — Adam Back and institutional money

Despite the launch of Morgan Stanley’s spot Bitcoin ETF, a rapid recovery of the crypto market should not be expected. This was stated by Blockstream CEO Adam Back.

According to him, ETFs have indeed become one of the most important positive factors for Bitcoin, but institutional adoption is progressing more slowly than retail investors expect. Even if BlackRock recommends allocating 2–4% of portfolios to Bitcoin, fund managers will not rush to implement this overnight, The New York Times reports.

Adam Back believes that capital inflows through ETFs could take a year or even up to 18 months. The process has already begun, but it will be gradual. Therefore, in his view, ETFs act more as a long-term tailwind rather than an immediate catalyst for growth.

Another factor is the shift in U.S. regulation. Back notes that the administration of Donald Trump has created a more favorable environment for the crypto industry compared to the period of strict pressure from the SEC under Gary Gensler. According to him, this has also influenced other countries — for example, the UK’s FCA has begun allowing ETFs in retirement accounts.

At the same time, Back believes that the significance of Bitcoin ETFs goes beyond any single administration. Bitcoin now has powerful allies on Wall Street — including BlackRock, Morgan Stanley, Fidelity, and other major players. These firms generate revenue from ETFs and are likely to defend this business through their influence and lobbying power.

Additional factors

Another important factor is Bitcoin’s four-year cycle linked to the halving. Historically, after supply reductions, the market has gone through periods of growth followed by decline and recovery. Even if this cycle starts to break down, investor expectations can still influence price movements: if many expect a drop and sell, they can reinforce that outcome.

According to Back, the situation will change once the market sees sustained demand. Such demand is already forming through ETFs, sovereign funds, institutional investors, and companies holding Bitcoin on their balance sheets. He also mentioned Strategy, formerly MicroStrategy, which continues to buy Bitcoin and uses new financial instruments to raise capital.

Back believes that consistent buyers of Bitcoin could eventually outweigh sellers. If asset managers, pension funds, and large financial platforms join in, upward pressure on Bitcoin’s supply could increase.

An overstated threat

Back also commented on concerns about quantum computing. According to him, the risk is often exaggerated, but it can still affect market sentiment due to a lack of understanding. Retail investors tend to see quantum threats as a distant issue, while institutions approach them more systematically, assessing even small risks in advance.

Overall, Back sees strong long-term drivers for Bitcoin: ETFs, growing Wall Street interest, more favorable regulation, and steady demand from large buyers. However, he warns that institutional adoption does not happen overnight — its impact on the market will be gradual and unfold over many months.

It is worth noting that options on BlackRock’s Bitcoin ETF have recently overtaken Deribit in the U.S. crypto derivatives market.

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