Inside The Ethereum Foundation Treasury: What Does It Hold?

The Ethereum Foundation has been around for a while and is in charge of funds that get distributed to projects on the Ethereum network. In its treasury, there is a large amount of ETH among other crypto investments that help to fund projects. Recently, the Ethereum Foundation released a report that showed what digital assets it held and their worth in terms of dollar value.

Still Holding More Than $1B ETH

In the report that was recently published, the Ethereum Foundation showed the various allocations of the cryptocurrencies in its possession. In total, there is about $1.5 billion worth of assets in its treasury. But even more interesting was the way these were divided. As expected, the foundation held more ETH than other digital but investments and other non-crypto assets also made a reasonable percentage of the treasury.

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80.5% in total was allocated to ETH alone. This came out at a dollar value of $1.294 billion worth of ETH as of the time that the report was published, accounting for only 0.297% of the total ETH supply. As for its other crypto investments, they came out to $11 million of the total treasury amount, making up 0.7%.

Non-crypto assets and investments made up an impressive 18.8% though, coming out to a dollar value of $302 million. The foundation also explained why these non-crypto assets and investments were necessary. According to the report, it puts funds into these types of investments to make sure that there is a part of the treasury that remains immune to the changes in the price of Ethereum, which can be quite volatile.

ETH recovers above $3,000 | Source: ETHUSD on TradingView.com

The majority of the foundation’s treasury holding is still in ETH, which speaks to its commitment to the long-term growth of the digital asset. It explained this saying; “We choose to hold the remainder of our treasury in ETH. The EF believes in Ethereum’s potential, and our ETH holdings represent that long-term perspective.”

But Why Sell At The Peak?

Over the past several years, there have been reports of the Ethereum Foundation selling its ETH tokens at the peak of the market. This was the same thing that occurred during the Ethereum peak in January when the foundation had sold 20,000 ETH for $97 million. The price of the digital asset had declined after this sale, prompting investors in the space to speculate that the foundation is calling the peak of the market.

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The Ethereum Foundation took the opportunity to respond to these allegations in its most recent report. It revealed that the reason behind the sales is the need to increase its non-crypto savings, presumably wanting a part of the treasury to maintain its value regardless of what direction the price swung. This way, they can always “continue funding non-core but high leverage projects through a market downturn.”

Featured image from CryptoSlate, chart from TradingView.com