Lukka CEO on Crypto’s Role in ETFs

Lukka Interview at etf.com Awards

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 that the recent launch of spot bitcoin ETFs is a “historic moment” for the ETF industry. The CEO also touched on the complexities surrounding Ethereum due to its staking capabilities and potential yield generation.

Lukka, the cryptocurrency industry’s leading software and data solutions provider, served as the presenting sponsor of 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 that although the agency approved 9 Ether Futures ETFs in October 2023, there could be potential delays in spot Ether ETF approvals.

“There is more complexity than we have with Bitcoin,” Materazzi said. “Because by putting that asset at risk, you can get a return on it. And that’s a difficult thing to put in an ETF. It’s going to take a lot of conversation, and most issuers don’t know if the SEC is doing this.” I’ll be comfortable with that.”

“I think we will see some delays in applications,” Materazzi said. “But honestly, even this presence is just the beginning.”

SEC Decision on Spot Ether ETF

On May 6, the SEC postponed its decision on Invesco Galaxy’s spot ether ETF application for 60 days to July 5, 2024. All eyes are now on the SEC for VanEck’s May 23, 2024 decision deadline.

“A single asset ETF with many different partners on mixed asset products and many other things is really just the beginning,” he explained.

Beyond bitcoin and Ethereum, Materazzi hinted at future innovations in the crypto ETF space. Lukka has been in talks with various partners about mixed-asset crypto products and other creative ETF structures, and suggests 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 vital to understanding the evolving landscape of the exchange-traded fund industry. Lukka’s participation in the awards ceremony also reflects their support for these new offerings and the broader integration of crypto assets into the ETF landscape.

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