Davis Polk partner Joe Hall discussed the SEC’s landmark approval of 11 spot bitcoin exchange traded funds (ETFs) with the Financial Times and whether leveraged and options-based bitcoin strategies could potentially secure SEC approval in the future as well. 

Joe noted that leveraged and options-based bitcoin strategies are natural extensions to the SEC’s ruling.

“How long that takes, I couldn’t tell you, but if there’s already analogues in ETF land or financial derivatives on the basic product, I suspect that those all end up being approved one way or the other,” Joe explained. “But I think it’s a very different question once you get outside of bitcoin.”

Firms pitch inverse cryptocurrency funds after SEC’s bitcoin ETF approval,” Financial Times (January 18, 2024) (subscription required)