Emily Walker
Matthew Sigel, who leads Digital Assets Research at VanEck, posted on X that Microsoft might consider investing in an Ethereum (ETH) exchange-traded fund (ETF), provided it meets their yield expectations. Sigel noted that it sounds like Microsoft could support an ETH ETF if they can earn staking income from it.
Microsoft’s Interest in Ethereum ETFs?
This insight follows comments from Amy Hood, Microsoft’s Executive VP and CFO, where she reaffirmed the company’s ongoing involvement with digital assets. While she did not specifically mention Ethereum, Hood highlighted that Microsoft has accepted cryptocurrency as payment since 2014.
“It’s crucial to take a moment to recognize that we started accepting cryptocurrency from customers back in 2014, and we still do today. We were among the first companies to acknowledge and embrace this innovation after hearing from our customers,” Hood shared.
She explained that the treasury team frequently assesses various asset classes, focusing on three main factors that guide their future strategies. “Our treasury team, alongside the Board of Directors, examines all asset classes available to us. It’s vital to remember our goals: safeguarding capital, ensuring liquidity for operational funding, and supporting partnerships and investments,” Hood stated.
Hood mentioned that digital assets are a regular topic for discussion with the Board, allowing Microsoft to evaluate if specific categories align with their strategic objectives. “With these three priorities, we review all asset classes, including cryptocurrencies, as part of our investment considerations. We discuss this consistently with our Board and reassess categories annually based on any changes to our goals,” she added.
Sigel’s belief that Microsoft might lean towards investing in Ethereum-based products is based on three observations: the company’s early adoption of crypto payments, ongoing discussions about digital assets at the board level, and the significance of yield generation in investment decisions. Sigel summarized:
1) They accept crypto and recognize its usefulness.
2) The board is actively evaluating digital assets for reserves.
3) Assets with yield have a greater chance of being purchased by MSFT.
However, not everyone agreed with this interpretation. One member of the Ethereum community questioned Sigel’s assumptions, arguing it might be an overreach to think Microsoft will invest in ETH ETFs, although he acknowledged that it could be a possibility.
In response to a question regarding Microsoft’s potential interest in Solana (SOL), Sigel simply replied, “Yes.” VanEck has been involved in the altcoin ETF sector, launching a spot Ethereum ETF and submitting an application for a Solana ETF with the US Securities and Exchange Commission in June. Experts suggest that under the upcoming Trump administration, approval for spot altcoin ETFs like Solana is likely with new SEC Chairman Paul Atkins.
Recently, Microsoft rejected another crypto-related proposal. A report from Bitrabo noted that some shareholders requested inclusion of Bitcoin as a reserve asset, but this proposal, voted on December 10, received only 0.55% support, with the majority opposing the idea of adding BTC to Microsoft’s balance sheet.
It’s worth mentioning that the US SEC approved the first spot Ethereum ETFs on June 23 of this year, partly due to the removal of staking features, which addressed the agency’s concerns about classifying staking as an unregistered security.
As of now, ETH is valued at $3,931.