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  • Writer's pictureanalysiswatch

Title: Ethereum Foundation Reveals Its Treasury Holdings

Apr 19, 2022 07:00AM ET

By: AnalysisWatch

For the first time, the Ethereum Foundation (EF) has published details of its financial assets.

The non-profit organisation supports the Ethereum ecosystem and has around $1.6 billion in financial assets.

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

The bulk of the $1.294 billion in assets, or 80.5% of EF's assets, are all in Ether Coins (ETH), representing nearly 0.3% of the total ETH supply as of the last day of March. This amount, which represents 39,168 ETHs worth roughly USD 119 million, is expected to be used for the customer incentive program.

The non-profit organization also holds $11 million (or 0.7%) in other digital currencies, although the report does not say which ones.

Meanwhile, non-crypto investments and assets account for 18.8%, or $302 million, of the Ethereum Foundation's coffers.

The EF follows a conservative treasury management policy that ensures sufficient funds are available to fund the EF's core objectives, even in the event of a multi-year market downturn.

This part of the budget is reported to be immune to significant changes in the ETH exchange rate over time.

The Ethereum Foundation has not specified which non-crypto assets are available for sale, but in response to the rising price of ether (ETH), the EF has disclosed plans to increase these holdings to provide greater security.

In 2021, €48 million will be spent.

EF also reported its 2021 spending, which totaled nearly $48 million.

As it turned out, around $28 million was spent on funding teams and projects within the Ethereum Foundation community. The majority of this spending ($21.8 million) was spent on research and development related to Layer 1.

The Foundation also spent close to $20 million on external purposes, including grants, third-party funding, rewards, sponsorships, and delegated domain allocations.

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