Ethereum Foundation Reveals $788 Million in Crypto Holdings, Mostly in Ether, Amid Transparency Push

The Ethereum Foundation’s latest financial report shows that as of October 31, 2024, it holds $970.2 million in both crypto and non-crypto assets, with $788.7 million in cryptocurrencies, 99.45% of which is in ether. This equates to roughly 0.26% of the total ether supply. Additionally, the foundation holds $181.5 million in non-crypto investments.

The Ethereum Foundation explained that holding the majority of its treasury in ETH aligns with its long-term confidence in Ethereum’s growth. Their treasury is dedicated to funding key public goods for the Ethereum ecosystem, with a conservative management strategy to ensure stability even during prolonged market downturns. This involves periodically selling ETH to build reserves for future years and boosting fiat reserves during market peaks to fund spending during bear markets.

The foundation’s recent ether sales have led to community concerns about transparency, especially after several large transactions occurred without prior notice.

In 2023, the foundation’s biggest expense was $47.4 million on “new institutions,” up from $28.6 million in 2022, primarily funding new organisations supporting Ethereum. It also increased spending on Layer 1 research and development to $34.7 million from $32.1 million in the prior year.

Executive Director Aya Miyaguchi expressed on social media that the foundation’s long-term strategy supports Ethereum’s sustainable growth, aiming to create an open and resilient ecosystem.

Ethereum’s network has been growing steadily, with active addresses reaching 13.7 million in October, up from 12.3 million in September, and on-chain volume rising to $108.6 billion from $90.9 billion the month before. At the time of reporting, ether traded at $2,912, having gained 19% over the past five days amid a broader market rally.