Interested in training for your team? Click here to learn more

Spot Bitcoin Exchange-Traded Products: New Investor Opportunities, Challenges, and Protections

This program is cancelled

A live 90-minute premium CLE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Tuesday, May 7, 2024 (in 8 days)

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Add to your calendar

This CLE webinar will explore the SEC's recent order approving the listing and trading of 11 spot Bitcoin exchange-traded products (ETPs), allowing investors to gain exposure to the price movements of Bitcoin on a registered national exchange rather than through a cryptocurrency exchange and without the technical hurdles associated with holding cryptocurrencies. The panel will review the SEC's order, its potential impact on the financial landscape and investment managers, the opportunities and challenges this new development presents, and what it means for the future of the crypto asset industry.

Description

On Jan. 10, 2024, the SEC issued an order approving the applications of 11 different spot Bitcoin ETPs to list and trade their shares on a national securities exchange. The SEC order represents the first time that the SEC has permitted the listing of an ETP that invests directly in a cryptocurrency.

The SEC's approval has the potential to broaden the investment universe for Bitcoin, especially for retail investors, enabling them to access the spot Bitcoin market indirectly.

Among the benefits of the SEC's approval of spot Bitcoin ETPs is the greater accessibility for traditional investors now able to gain exposure to Bitcoin through their traditional brokerage accounts. Also, adding Bitcoin to an investor's portfolio can potentially reduce overall portfolio risk through greater diversification of assets. However, there are also challenges that remain with crypto assets including suitability issues related to sales of spot Bitcoin ETPs, uncertainties regarding custody of the cryptocurrency, and understanding any potential fraud and market manipulation risks.

Listen as our authoritative panel explores the latest developments in the SEC's approval of initial spot Bitcoin ETPs, what this development means for investors, and the impact on financial markets now and in the future.

READ MORE

Outline

  1. Overview: spot Bitcoin ETPs -- definitions and how they work
  2. Background behind the SEC's order: Grayscale Investments v. SEC
  3. Significance of the SEC's order approving the listing and trading of spot Bitcoin ETPs on a national exchange
  4. Impact on investors and investment managers
  5. Process for listing and trading ETP shares
  6. Advantages and challenges of Bitcoin ETPs
  7. Comparative analysis: Bitcoin ownership vs. Bitcoin ETPs
  8. Protections for investors in ETPs that are listed and traded on national security exchanges
  9. The future of crypto asset trading

Benefits

The panel will address these and other key issues:

  • What is the significance of the SEC approving the listing and trading of spot Bitcoin ETPs on a national exchange?
  • What are the unique aspects of the recently introduced Bitcoin ETPs?
  • What are the opportunities and challenges related to spot Bitcoin ETPs?
  • What protections exist for investors in ETPs?

Faculty

MacGregor, William
William T. MacGregor
Partner
Proskauer Rose

Mr. MacGregor is a partner in the registered funds group and a member of the investment management practice. Over the...  |  Read More

Additional faculty
to be announced.