Bitcoin 'Early In Bull Market,' Can Compete With Gold ETFs, Blockstream CEO Says

Blockstream CEO Adam Back believes Bitcoin BTC/USD is entering a fresh bull market, citing strong inflows from ETFs and institutional investors.

What Happened: "We're certainly in the early stages of a bull market," Back told CNBC on Wednesday, emphasizing the growing demand for Bitcoin among financial institutions.

Back highlighted that Bitcoin ETFs are currently absorbing twice the daily mined supply, with firms like MicroStrategy further adding to the buying pressure.

"Really, there's a lot of inflow," he said, adding that despite short-term profit-taking by midterm investors, structural demand remains robust.

Bitcoin is currently trading at $96,000, gaining 2% for the day, while Ethereum BTC/USD is up 3% at $2,705.

Other major cryptocurrencies are also rallying, with BNB BNB/USD up 2.5%, Solana SOL/USD up 3.5% to $170.5, and Litecoin LITE/USD surging 8%.

Meme coins Shiba Inu SHIB/USD and Dogecoin DOGE/USD are trading flat.

Also Read: Study Shows Reasons Why Bitcoin, Ethereum, Dogecoin, Shiba Inu Plummet From Their All-Time Highs

Why It Matters: Back noted that institutional adoption is accelerating, with ETF 13F filings revealing that 30% of Bitcoin ETF buyers are institutions.

He expects pension and mutual funds to increase their allocations in the coming cycle. "There's a lot of room for capital to come in," he said.

Additionally, Back suggested Bitcoin could soon compete with gold ETFs as capital reallocates from traditional safe-haven assets.

He also pointed to sovereign treasuries as a potential catalyst, stating that if one major nation adds Bitcoin to reserves, "others will feel forced to follow suit."

With institutional capital and treasury investments increasing, the market could be poised for further gains, reinforcing Back's view that Bitcoin remains in the early innings of a sustained rally.

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