Ethereum Foundation Reveals $970M Treasury Amid Calls for Transparency

The Ethereum Foundation (EF) disclosed that it currently holds $970.2 million in combined assets as of October 31, 2024, affirming its strategic choice to prioritize Ethereum in its treasury. According to the report, the foundation holds $788.7 million in cryptocurrencies, with 99.45% of this sum in ether (ETH). This sizable ETH holding represents 0.26% of the total supply.

Beyond cryptocurrency assets, EF’s treasury includes $181.5 million in non-crypto investments, balancing the foundation’s asset allocation to support its diverse needs. In the report, EF expressed its commitment to preserving a substantial treasury for funding “important public goods” and maintaining resources to endure potential multi-year market downturns.

Given the volatility of the crypto market, EF has opted for a conservative treasury management approach, including selling portions of ETH to secure fiat reserves during bullish periods and ensuring spending capacity during bear markets.

Community Concerns over Ethereum Sales

The foundation’s treasury disclosure comes on the heels of community concerns around unexplained large transactions and unexpected ETH sales without prior notice, which triggered calls for greater transparency. EF’s report emphasized that its ETH sales are essential to fund the foundation’s mission and ensure its capacity to support Ethereum’s growth, even during market challenges.

“Our ETH holdings are a testament to our long-term perspective,” the foundation remarked, adding that its measured ETH sales contribute to sustainable treasury growth. Aya Miyaguchi, the executive director of EF, echoed this sentiment in a recent post. He stated:

“We’re committed to nurturing Ethereum’s future and establishing resilience in the ecosystem, even if the full impact is realized years from now.”

Growing Support for Ethereum’s Ecosystem

In 2023, EF’s primary expenditure focused on “new institutions” supporting the Ethereum ecosystem, with $47.4 million allocated to grants—a major increase from $28.6 million in 2022. Additionally, research and development for Layer 1 infrastructure received $34.7 million, furthering Ethereum’s foundational advancements.

Meanwhile, the Ethereum network has shown consistent growth in activity. Active addresses rose to 13.7 million in October from 12.3 million in September, while on-chain volume surged to $108.6 billion in October, a notable rise from $90.9 billion in September and $57.1 billion in October last year.

As of the latest data, ether was trading at $2,912, gaining 2.4% over 24 hours.