VanEck head of crypto research thinks Microsoft may allow Ethereum ETF staking

The CFO of Microsoft has stated that the company is currently in pursuit of investment opportunities that have the potential to generate income.

In contrast to its rejection of a Bitcoin investment proposal, Microsoft may be amenable to investigating alternative crypto investment opportunities. Matthew Sigel, VanEck’s director of digital assets research, stated that Microsoft may be inclined to contemplate an Ethereum ETF investment if the product includes a staking feature.

Sigel identified this potential transparency in a statement made by Amy Hood, Microsoft’s Chief Financial Officer, at the company’s annual shareholder meeting on Tuesday. The meeting was marked by a resounding rejection of a proposal to incorporate Bitcoin as a treasury asset by the shareholders.

Hood stated that Microsoft has been accepting cryptocurrency as payment since 2014 and has been contemplating it as an asset class. She observed, however, that the investments’ primary objectives are to generate income, preserve capital, and ensure liquidity.

“In conjunction with the Board of Directors’ evaluations, our treasury team evaluates all asset classes that are at our disposal. It is crucial to recall our criteria and objectives for our balance sheet and cash balances, which are to preserve capital and provide a significant amount of liquidity to support our operations, partnerships, and investments,” Hood stated.

Sigel suggested that Microsoft may be interested in an Ethereum ETF that enables them to engage in Ethereum staking and earn rewards.

He emphasized that the tech behemoth is a proponent of the utility of crypto and that the board “has already and will continue to evaluate digital assets for the reserve” when questioned about his reasoning.

Sigel also observed that Microsoft is more inclined to evaluate assets that generate income for acquisition.

The absence of staking features in Ethereum ETFs based in the United States is currently a result of regulatory concerns regarding the potential for staking services to be classified as unregistered securities offerings.

However, the securities regulator might be willing to talk about Ethereum ETFs that can be staked with the new Trump administration and the SEC’s future leaders.

Hester Pierce, the Commissioner of the Securities and Exchange Commission, has suggested that discussions regarding staking and other features may continue.

The integration of staking into Ethereum ETFs has the potential to significantly reduce management fees, potentially reducing them to near-zero levels. This would increase the appeal of these ETFs to investors, as they would be able to earn rewards while minimizing costs.

Analysts contend that the implementation of staking in Ethereum ETFs could enhance their competitiveness with Bitcoin ETFs, which currently dominate the market.

Nate Geraci, the president of the ETF Store, is of the opinion that the inclusion of spot Ethereum ETFs, which include staking, is a matter of “when, not if.”

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