Microsoft may embrace Ethereum ETF, CFO reveals positive signals

Microsoft’s growing interest in investing in crypto assets has sparked speculation that the tech giant may adopt these ETFs after the spot Ethereum ETF enabled tracking.

Microsoft CFO Amy Hood gave a speech at the company’s annual shareholder meeting, which then sparked the discussion.

While shareholders overwhelmingly rejected the proposal to use BTC as a treasury asset, Hood’s comments highlighted the tech giant’s openness to exploring digital assets.

Hood noted at the meeting that Microsoft began accepting crypto assets for payment in 2014 and continues to evaluate its potential as an asset class.

In addition, Hood outlined the company’s investment criteria, emphasizing that liquidity, capital preservation, and income generation are top priorities.

Hood explained that Microsoft’s finance team works with the board of directors to evaluate all available asset classes. And emphasized that the company will preserve capital, maintain liquidity to support operations, cooperation and investment, and generate income as the main goals of its investment strategy.

Matthew Sigel, head of digital asset research at VanEck, interpreted Hood's comments as a signal that Microsoft may consider Ethereum investment products, especially those that utilize spot trading.

Sigel noted that the company’s focus on yield aligns with the potential benefits of a stake-backed ETF, which generates 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 objectives. Sigel believes that “the board has begun and will continue to evaluate digital asset reserves.”

Currently, U.S.-based Ethereum ETFs do not include tracking capabilities, largely due to regulatory uncertainty surrounding tracking services and the SEC’s (U.S. Securities and Exchange Commission) classification of them.

However, analysts believe that regulatory attitudes may shift under the incoming Trump administration with potential changes in SEC leadership.

Advocates for Ethereum ETFs that enable tracking capabilities believe that the inclusion of tracking rewards can reduce management fees and provide an additional source of revenue, making these products more attractive.

Such an advancement could also help Ethereum ETFs compete with BTC ETFs, which currently dominate the Crypto asset investment market.

ETF Store President Nate Geraci also expressed similar optimism, believing that the inclusion of tracking in Ethereum ETFs is “a matter of when, not if”.