Microsoft's interest in investing in crypto assets is growing day by day, which has triggered speculation about whether this technology giant might adopt these ETFs after enabling the monitoring function for spot Ethereum ETFs.
Microsoft's Chief Financial Officer Amy Hood gave a relevant speech at the company's annual Shareholder Meeting, which subsequently sparked discussion.
Although shareholders overwhelmingly voted down the proposal to treat BTC as a financial Asset, Hood's comments emphasized the tech giant's openness to exploring digital Assets.
Hood pointed out at the meeting that Microsoft started accepting Crypto Assets as payment in 2014 and will continue to evaluate their potential as an Asset class.
Additionally, Hood outlined the company's investment criteria, stressing liquidity, capital preservation, and revenue generation as the top priorities.
Hood explained that Microsoft's financial team collaborates with the Board of Directors to assess all available Asset classes and emphasized that the company aims to preserve capital, maintain liquidity to support Operation, collaboration, investment, and revenue generation as key objectives of its investment Global Strategy.
Matthew Sigel, Head of Digital Asset Research at VanEck, interpreted Hood's comments as a signal that Microsoft might consider Ethereum investment products, particularly those that utilize monitoring features.
Sigel pointed out that the company's focus on returns is consistent with the potential benefits of supporting equity ETFs, which generate rewards through participation in Ethereum's proof-of-stake network.
Sigel added that assets generating returns are more likely to align with Microsoft's investment objectives. Sigel believes that the Board of Directors has started and will continue to evaluate digital asset reserves.
Currently, the Ethereum ETF based in the USA does not include a tracking feature, mainly due to regulatory uncertainty surrounding tracking services and the SEC's classification of it.
However, analysts believe that with the potential changes in the SEC leadership, regulatory attitudes may shift under the incoming Trump administration.
Advocates for enabling tracking features in Ethereum ETFs argue that the inclusion of tracking rewards can lower management fees and provide additional income sources, making these products more attractive.
This 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, stating that incorporating tracking into Ethereum ETFs is "a matter of when, not if."