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December 12, 2024

Microsoft may be open to Ethereum ETFs despite voting against Bitcoin reserves Assad Jafri | usagoldmines.com

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.

During the meeting, Hood noted that Microsoft began accepting crypto payments in 2014 and continues to assess its potential as an asset class. 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. She emphasized that the company prioritizes preserving capital, maintaining liquidity to support operations, partnerships, and investments, and generating income as key objectives in its investment strategy.

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.

According to Sigel:

“The board has already and will continue to evaluate digital assets for the reserve.”

Currently, US-based Ethereum ETFs do not include staking features, largely due to regulatory uncertainty surrounding staking services and their classification by the SEC. However, analysts believe regulatory attitudes could shift under the incoming Trump administration, with potential changes in SEC leadership.

Advocates for staking-enabled Ethereum ETFs argue that incorporating staking rewards could make these products more appealing by reducing management fees and providing additional income streams. Such advancements could also help Ethereum ETFs compete with Bitcoin ETFs, which currently dominate the crypto investment market.

The ETF Store president Nate Geraci echoed this optimism, suggesting that the inclusion of staking in Ethereum ETFs is “a matter of when not if.”

The post Microsoft may be open to Ethereum ETFs despite voting against Bitcoin reserves appeared first on CryptoSlate.

 

This articles is written by : Nermeen Nabil Khear Abdelmalak

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