Ethereum Foundation Reveals Its Treasury Holdings

The Ethereum Foundation (EF) has disclosed the details of its treasury holdings for the first time in its history. 

The non-profit organization supports the Ethereum ecosystem and holds approximately $1.6 billion worth of financial assets. 

As EF declared in its public financial report, the holdings are split between crypto and non-crypto investments. 

The vast majority of the assets, at $1.294 billion or 80.5% of the EF treasury, is held in Ether (ETH) coins, which represents nearly 0.3% of the total ETH supply as of the final day of March. The quantity, which includes 39,168 ETH worth an approximate $119 million USD, is already planned to be used for the client incentive program. 

“The EF believes in Ethereum’s potential, and our ETH holdings represent that long-term perspective,” read the report.

The non-profit also holds $11 million (or 0.7%) worth of assets in other digital currencies, though the report did not reveal which ones. 

Conservative Treasury Management

In the meantime, 18.8%, or $302 million of the Ethereum Foundation’s treasury consists of non-crypto investments and assets.

“The EF follows a conservative treasury management policy that ensures we have sufficient resources to fund the EF’s core objectives even in the case of a multi-year market downturn. This part of our budget is immune to changes in the price of ETH on a significant timeline”, explained the report.

The Ethereum Foundation has not specified which non-crypto assets it has in its disposition, however, in response to the rising Ether (ETH) prices, the EF has revealed plans to increase these holdings in order to maintain a higher level of safety.

Spent $48 Million in 2021

The EF similarly reported its 2021 spending, which consisted of nearly $48 million in total. 

As revealed, around $28 million was used to fund teams and projects within the Ethereum Foundation community. A major portion of this spending ($21.8 million) was dedicated to Layer 1 research and development. 

The foundation also spent close to $20 million for external purposes, which included grants, third-party fundings, bounties, sponsorship, and delegated domain allocations.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Simona is a fintech journalist and content editor at DailyCoin Academy, which focuses on educating new crypto investors. She entered the crypto space in early 2018, got burned, but discovered a passion for trading, and now it’s her hobby. Simona covers crypto and blockchain-related topics and takes a deeper look at what lies behind the latest industry trends.