The Ethereum Foundation has published a detailed financial report outlining its spending in 2021 as well as its total holdings
Ethereum Foundation Now Holds $1.6 Billion
The Ethereum Foundation has published a detailed financial report outlining its spending in 2021 as well as its total holdings. The company also disclosed its expenditures after selling a portion of its holdings at the peak of the Ethereum rally.
According to the report, the foundation’s treasury stood at around $1.6 billion as of March 31, 2022. The majority of its holdings were in cryptocurrencies, with non-crypto assets accounting for only $300 million.
Ethereum accounts for 99% of the foundation’s cryptocurrency holdings, accounting for nearly 0.3 percent of the total Ethereum supply.
The fund’s manager observed that they adhere to a conservative treasury management policy, implying that funds are betting on Ethereum’s long-term performance as an asset while maintaining the ability to fund all of their objectives even during a multi-year market downturn.
Ethereum Foundation Sold Portion Of Its Crypto Holdings
Despite its pro-Ether stance, the foundation sold a portion of its crypto holdings in favor of non-crypto savings right at the top. Some members of the Ethereum community suspected the foundation of insider trading.
According to the report, the Ethereum foundation made the decision to sell Ether in favor of non-crypto holdings due to high ETH prices.
Despite the current market conditions, the fund continues to hold a large amount of Ether in its treasury because the company believes in the long-term potential of the second-largest cryptocurrency on the market.
The fund’s largest expenditure was on L1 research and development. According to the report, they spent nearly $22 million on it, while only $2 million was spent on L2 research and development. Community development was the second most expensive category, with EF spending nearly $10 million on it.