Davis Polk partner Joe Hall discussed bitcoin ETFs and the legal challenges they may face now that they are accessible to a wider audience of investors with Bloomberg Law.  

Speaking from his experience advising Grayscale on its listing of Grayscale Bitcoin Trust into an ETF, Joe noted that the transition required carefully tailoring disclosures. “The issues surrounding the fact that this asset is Bitcoin, and the particular disclosure issues that raises are ones that we and Grayscale have been working on for almost a decade at this point and they are significant,” he said.

“We had to start from scratch in describing the asset, how the asset is traded, risks associated with the trading of the asset, and the market structure for the spot market well before the SEC ever agreed to allow the spot product to trade as an ETF,” Joe explained.

Bitcoin ETFs Brace for New Era of Legal Risk After Market Debuts,” Bloomberg Law (February 13, 2024) (subscription required)