diff --git a/src/analytics/PosthogAnalytics.ts b/src/analytics/PosthogAnalytics.ts
index 0ca23fb3..9d4f3f5c 100644
--- a/src/analytics/PosthogAnalytics.ts
+++ b/src/analytics/PosthogAnalytics.ts
@@ -20,7 +20,7 @@ import { MatrixClient } from "matrix-js-sdk";
 import { Buffer } from "buffer";
 
 import { widget } from "../widget";
-import { getSetting, setSetting, settingsBus } from "../settings/useSetting";
+import { getSetting, setSetting, getSettingKey } from "../settings/useSetting";
 import {
   CallEndedTracker,
   CallStartedTracker,
@@ -34,6 +34,7 @@ import {
 } from "./PosthogEvents";
 import { Config } from "../config/Config";
 import { getUrlParams } from "../UrlParams";
+import { localStorageBus } from "../useLocalStorage";
 
 /* Posthog analytics tracking.
  *
@@ -413,7 +414,7 @@ export class PosthogAnalytics {
     //  * When the user changes their preferences on this device
     // Note that for new accounts, pseudonymousAnalyticsOptIn won't be set, so updateAnonymityFromSettings
     // won't be called (i.e. this.anonymity will be left as the default, until the setting changes)
-    settingsBus.on("opt-in-analytics", (optInAnalytics) => {
+    localStorageBus.on(getSettingKey("opt-in-analytics"), (optInAnalytics) => {
       this.updateAnonymityAndIdentifyUser(optInAnalytics);
     });
   }
diff --git a/src/e2ee/sharedKeyManagement.ts b/src/e2ee/sharedKeyManagement.ts
index 0a819066..651012c7 100644
--- a/src/e2ee/sharedKeyManagement.ts
+++ b/src/e2ee/sharedKeyManagement.ts
@@ -14,7 +14,27 @@ See the License for the specific language governing permissions and
 limitations under the License.
 */
 
-import { useSetting } from "../settings/useSetting";
+import { useEffect, useMemo } from "react";
+import { randomString } from "matrix-js-sdk/src/randomstring";
 
-export const useRoomSharedKey = (roomId: string, initialValue?: string) =>
-  useSetting(`room-shared-key-${roomId}`, initialValue);
+import { useEnableE2EE } from "../settings/useSetting";
+import { useLocalStorage } from "../useLocalStorage";
+
+const getRoomSharedKeyLocalStorageKey = (roomId: string): string =>
+  `room-shared-key-${roomId}`;
+
+export const useRoomSharedKey = (
+  roomId: string
+): [string | null, ((value: string) => void) | null] => {
+  const key = useMemo(() => getRoomSharedKeyLocalStorageKey(roomId), [roomId]);
+  const [e2eeEnabled] = useEnableE2EE();
+  const [roomSharedKey, setRoomSharedKey] = useLocalStorage(key);
+
+  useEffect(() => {
+    if ((roomSharedKey && roomSharedKey !== "") || !e2eeEnabled) return;
+
+    setRoomSharedKey(randomString(32));
+  }, [roomSharedKey, e2eeEnabled, setRoomSharedKey]);
+
+  return e2eeEnabled ? [roomSharedKey, setRoomSharedKey] : [null, null];
+};
diff --git a/src/home/CallList.tsx b/src/home/CallList.tsx
index f93e2ff8..99296c5d 100644
--- a/src/home/CallList.tsx
+++ b/src/home/CallList.tsx
@@ -109,7 +109,7 @@ function CallTile({
       <CopyButton
         className={styles.copyButton}
         variant="icon"
-        value={getRoomUrl(roomAlias, roomSharedKey)}
+        value={getRoomUrl(roomAlias, roomSharedKey ?? undefined)}
       />
     </div>
   );
diff --git a/src/room/GroupCallView.tsx b/src/room/GroupCallView.tsx
index 2ab942d3..4c796e9f 100644
--- a/src/room/GroupCallView.tsx
+++ b/src/room/GroupCallView.tsx
@@ -245,14 +245,13 @@ export function GroupCallView({
   }, [groupCall, state, leave]);
 
   const [e2eeSharedKey, setE2EESharedKey] = useRoomSharedKey(
-    groupCall.room.roomId,
-    password ?? undefined
+    groupCall.room.roomId
   );
 
   useEffect(() => {
-    if (!password || password === e2eeSharedKey) return;
+    if (!password || password === "" || password === e2eeSharedKey) return;
 
-    setE2EESharedKey(password);
+    setE2EESharedKey?.(password);
   }, [password, e2eeSharedKey, setE2EESharedKey]);
 
   useEffect(() => {
diff --git a/src/settings/useSetting.ts b/src/settings/useSetting.ts
index c127554e..5d86a4b6 100644
--- a/src/settings/useSetting.ts
+++ b/src/settings/useSetting.ts
@@ -1,5 +1,5 @@
 /*
-Copyright 2022 New Vector Ltd
+Copyright 2022 - 2023 New Vector Ltd
 
 Licensed under the Apache License, Version 2.0 (the "License");
 you may not use this file except in compliance with the License.
@@ -14,59 +14,49 @@ See the License for the specific language governing permissions and
 limitations under the License.
 */
 
-import { EventEmitter } from "events";
-import { useMemo, useState, useEffect, useCallback } from "react";
+import { useCallback, useMemo } from "react";
 import { isE2EESupported } from "livekit-client";
 
 import { PosthogAnalytics } from "../analytics/PosthogAnalytics";
+import {
+  getLocalStorageItem,
+  setLocalStorageItem,
+  useLocalStorage,
+} from "../useLocalStorage";
 
 type Setting<T> = [T, (value: T) => void];
 type DisableableSetting<T> = [T, ((value: T) => void) | null];
 
-// Bus to notify other useSetting consumers when a setting is changed
-export const settingsBus = new EventEmitter();
-
-const getSettingKey = (name: string): string => {
+export const getSettingKey = (name: string): string => {
   return `matrix-setting-${name}`;
 };
 // Like useState, but reads from and persists the value to localStorage
 export const useSetting = <T>(name: string, defaultValue: T): Setting<T> => {
   const key = useMemo(() => getSettingKey(name), [name]);
 
-  const [value, setValue] = useState<T>(() => {
-    const item = localStorage.getItem(key);
-    return item == null ? defaultValue : JSON.parse(item);
-  });
+  const [item, setItem] = useLocalStorage(key);
 
-  useEffect(() => {
-    settingsBus.on(name, setValue);
-    return () => {
-      settingsBus.off(name, setValue);
-    };
-  }, [name, setValue]);
+  const value = useMemo(
+    () => (item == null ? defaultValue : JSON.parse(item)),
+    [item, defaultValue]
+  );
+  const setValue = useCallback(
+    (value: T) => {
+      setItem(JSON.stringify(value));
+    },
+    [setItem]
+  );
 
-  return [
-    value,
-    useCallback(
-      (newValue: T) => {
-        setValue(newValue);
-        localStorage.setItem(key, JSON.stringify(newValue));
-        settingsBus.emit(name, newValue);
-      },
-      [name, key, setValue]
-    ),
-  ];
+  return [value, setValue];
 };
 
 export const getSetting = <T>(name: string, defaultValue: T): T => {
-  const item = localStorage.getItem(getSettingKey(name));
+  const item = getLocalStorageItem(getSettingKey(name));
   return item === null ? defaultValue : JSON.parse(item);
 };
 
-export const setSetting = <T>(name: string, newValue: T) => {
-  localStorage.setItem(getSettingKey(name), JSON.stringify(newValue));
-  settingsBus.emit(name, newValue);
-};
+export const setSetting = <T>(name: string, newValue: T) =>
+  setLocalStorageItem(getSettingKey(name), JSON.stringify(newValue));
 
 const canEnableSpatialAudio = () => {
   const { userAgent } = navigator;
diff --git a/src/useLocalStorage.ts b/src/useLocalStorage.ts
new file mode 100644
index 00000000..e7fe51ef
--- /dev/null
+++ b/src/useLocalStorage.ts
@@ -0,0 +1,59 @@
+/*
+Copyright 2023 New Vector Ltd
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import EventEmitter from "events";
+import { useCallback, useEffect, useState } from "react";
+
+type LocalStorageItem = ReturnType<typeof localStorage.getItem>;
+
+// Bus to notify other useLocalStorage consumers when an item is changed
+export const localStorageBus = new EventEmitter();
+
+// Like useState, but reads from and persists the value to localStorage
+export const useLocalStorage = (
+  key: string
+): [LocalStorageItem, (value: string) => void] => {
+  const [value, setValue] = useState<LocalStorageItem>(() =>
+    localStorage.getItem(key)
+  );
+
+  useEffect(() => {
+    localStorageBus.on(key, setValue);
+    return () => {
+      localStorageBus.off(key, setValue);
+    };
+  }, [key, setValue]);
+
+  return [
+    value,
+    useCallback(
+      (newValue: string) => {
+        setValue(newValue);
+        localStorage.setItem(key, newValue);
+        localStorageBus.emit(key, newValue);
+      },
+      [key, setValue]
+    ),
+  ];
+};
+
+export const getLocalStorageItem = (key: string): LocalStorageItem =>
+  localStorage.getItem(key);
+
+export const setLocalStorageItem = (key: string, value: string): void => {
+  localStorage.setItem(key, value);
+  localStorageBus.emit(key, value);
+};