Microsoft’s Potential Interest in Ethereum ETFs with Staking Features
Microsoft’s increasing involvement in crypto investments has sparked discussions about the tech giant’s potential adoption of spot Ethereum (ETH) ETFs once they introduce staking capabilities.
The speculation arises from statements made by Microsoft CFO Amy Hood at the company’s annual shareholder meeting. While shareholders rejected a proposal to incorporate Bitcoin (BTC) as a treasury asset, Hood’s remarks shed light on Microsoft’s exploration of digital assets.
Hood mentioned that Microsoft has been accepting crypto payments since 2014 and continues to evaluate their potential as an asset class. She outlined the company’s investment criteria, focusing on liquidity, capital preservation, and income generation as key factors.
Microsoft’s treasury team, in collaboration with the Board of Directors, assesses all available asset classes. Capital preservation, liquidity to support operations and investments, and income generation are highlighted as crucial aspects of the company’s investment strategy.
Matthew Sigel, the head of digital assets research at VanEck, interpreted Hood’s comments as a possible indication of Microsoft’s interest in Ethereum-focused investment products, especially those utilizing staking. He suggested that the company’s emphasis on yield aligns with the benefits of staking-enabled ETFs, which earn rewards by participating in Ethereum’s proof-of-stake network.
Currently, US-based Ethereum ETFs do not include staking features due to regulatory uncertainties surrounding staking services and their classification by the SEC. However, there is optimism that regulatory attitudes may change under the new administration, potentially leading to the inclusion of staking in Ethereum ETFs.
Advocates for staking-enabled Ethereum ETFs argue that incorporating staking rewards could enhance the appeal of these products by reducing management fees and offering additional income streams. This development could also help Ethereum ETFs compete with Bitcoin ETFs, which currently dominate the crypto investment market.
Nate Geraci, the president of The ETF Store, shares this optimism, stating that the inclusion of staking in Ethereum ETFs is inevitable.