Microsoft’s evolving interest in crypto investments has sparked speculation about the tech giant’s potential adoption of spot Ethereum (ETH) ETFs once they enable staking features.
The discussion follows remarks made by Microsoft CFO Amy Hood during the company’s annual shareholder meeting. While shareholders overwhelmingly rejected a proposal to adopt Bitcoin (BTC) as a treasury asset, Hood’s comments highlighted the tech giant’s openness to exploring digital assets.
Hood said that Microsoft started accepting cryptocurrency payments in 2014. The company continues to evaluate its potential. She outlined the company’s investment criteria, emphasizing liquidity, capital preservation, and income generation as top priorities.
Hood explained that Microsoft’s treasury team, in collaboration with the Board of Directors, evaluates all available asset classes. Her investment strategy emphasizes that Microsoft’s top priorities are to preserve capital, maintain liquidity in order to support its operations, partnership, and investments as well as generate income.
VanEck’s head of digital assets research, Matthew Sigel, interpreted Hood’s comments as a signal that Microsoft might consider Ethereum-focused investment products, particularly those leveraging staking.
He noted that the company’s focus on yield aligns with the potential benefits of staking-enabled ETFs, which generate rewards by participating in Ethereum’s proof-of-stake network. Sigel added that yield-generating assets are more likely to align with Microsoft’s investment goals.
Sigel, according to:
“The board has already and will continue to evaluate digital assets for the reserve.”
The SEC has not classified staking as a service, which is why US-based Ethereum funds do not have staking. Analysts do believe, however, that the regulatory attitude could change with the new Trump administration and possible changes in SEC leadership.
The advocates of Ethereum ETFs with staking enabled argue that adding staking incentives could increase the appeal of these products by decreasing management fees and generating additional revenue streams. These advancements may also allow Ethereum ETFs to compete against Bitcoin ETFs which dominate the current crypto market.
Nate Geraci, president of The ETF Store, echoed Geraci’s optimism and suggested that the inclusion staking Ethereum ETFs was feasible. “a matter of when not if.”
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