Lukka CEO Robert Materazzi discusses the future of cryptocurrency in the evolving exchange-traded fund landscape.
In an exclusive interview with etf.com Editor-in-Chief Kristin Myers, Lukka CEO Robert Materazzi discussed the recent launch of spot bitcoin ETFs, the future of cryptocurrency ETFs, and his takeaways from the awards ceremony. Materazzi emphasized the recent launch of spot bitcoin ETFs as a “historical moment” for the ETF industry. The CEO also addressed complexities surrounding Ethereum due to its staking capabilities and the potential yield generation.
Lukka, a leading provider of software and data solutions for the cryptocurrency industry, served as a presenting sponsor for the 2024 etf.com Awards.
Materazzi expressed uncertainty regarding the U.S. Securities and Exchange Commission’s comfort level with these features within an ETF structure, suggesting potential delays in approvals for a spot ether ETF, despite the agency’s approval of 9 ether Futures ETFs back in October 2023.
“There’s more complexities with those than we had with bitcoin,” Materazzi explained. “Because you can stake that asset so you can get a yield off of it. And that’s something that’s tricky to put into an ETF. That’s going to require a lot of conversation and a lot of the issuers don’t know if the SEC is going to be comfortable with that.”
“I think we’ll see…some delays on the applications,” Materazzi said. “But honestly, even that asset is just the beginning.”
SEC Decision on Spot Ether ETF
On May 6, the SEC delayed its decision on Invesco Galaxy’s application for a spot ether ETF for 60 days until July 5, 2024. Now all eyes are on the SEC for VanEck’s upcoming decision deadline on May 23, 2024.
“With a lot of different partners on mixed asset products and a lot of other things, a single asset ETF is really just the beginning,” he explained.
Beyond bitcoin and Ethereum, Materazzi hinted at future innovation in the crypto ETF space. Lukka is engaged in discussions with various partners on mixed-asset crypto products and other creative ETF structures, suggesting that single-asset crypto ETFs represent just the beginning of a much broader evolution.
As Lukka plays a key role in the infrastructure supporting these innovative products, their perspective is crucial for understanding the evolving landscape of the exchange-traded funds industry. Lukka’s involvement in the awards ceremony also reflects their support for these new offerings and the broader integration of crypto assets into the ETF landscape.
