Legendary cypherpunk Hal Finney’s iconic “Running bitcoin” tweet on Jan. 11, 2009, marked the beginning of Bitcoin’s journey, culminating in its recent approval for the first spot exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) precisely 15 years later.
Running bitcoin
— halfin (@halfin) January 11, 2009
The approval includes major financial players such as BlackRock (BLK) and Fidelity, along with the transformation of Grayscale’s Bitcoin Trust (GBTC) into an ETF. Fees for these products vary from zero for the initial months (ARK, Bitwise, Invesco) to 1.5% (Grayscale).
Hal Finney, who passed away in August 2014, not only became the first person, following Satoshi Nakamoto, to download and run Bitcoin software but also predicted the cryptocurrency’s rapid growth. In an email to Nakamoto, Finney estimated that a fraction of global household wealth could flow into the project, potentially valuing each of the 21 million coins at $10 million one day.
Originally conceived as an anti-establishment concept, Bitcoin’s approval on Wall Street signifies its evolution into a widely recognized alternative asset. SEC’s green light indicates a shift from years of delays and rejections for various attempts to launch spot bitcoin ETFs.
Unlike previous rejections, a regulated product now allows investors and funds to gain exposure to Bitcoin without the challenges of setting up and managing a cryptocurrency wallet. This development follows years of efforts, including the 2013 application by Cameron and Tyler Winklevoss, co-founders of Gemini, and Grayscale’s ongoing attempts to convert its trust into an ETF since 2017.
Bitcoin prices surged to $47,500 early Thursday but retreated post-approvals, approaching their 2021 peak of $69,000. While Hal Finney is not here to witness the apparent success of Bitcoin, his legacy continues to endure.