Ethereum Foundation Backs ETH’s Potential, Price Approaching $3k

Ethereum Foundation's 2024 Financial Report Reveals Majority Stake in ETH, Affirming Long-Term Commitment

Ethereum Foundation Backs ETH's Potential, Price Approaching $3k

Key Points

  • The Ethereum Foundation’s 2024 financial report shows 99% of its $788.7 million crypto holdings are in Ethereum (ETH).
  • The Foundation’s goal is to fund public goods for the Ethereum ecosystem, even during market downturns.
  • The Ethereum Foundation recently released its financial report for 2024.
    The report highlighted the Foundation’s commitment to keeping the majority of its treasury in Ethereum.

    Ethereum (ETH) accounts for almost all of the Foundation’s treasury.
    The report shows that the Foundation’s crypto holdings are worth $788.7 million, 99% of which is held in ETH.

    The report is 27 pages long.
    As of October 31, the Foundation reported having approximately $970.2 million in assets.
    This includes $788.7 million in crypto and $181.5 million in non-crypto investments and assets.

    Ethereum Foundation’s Financial Strategy

    The Foundation addressed recent ETH sales in the report.
    Their aim is to fund public goods for the Ethereum ecosystem for many years to come.
    To achieve this, they have adopted a conservative treasury management policy.
    This policy aims to ensure that the Foundation has enough resources even during multi-year market downturns.

    The policy involves periodically selling ETH.
    This is done to ensure sufficient savings for future years.
    It also involves increasing fiat savings during bull markets to fund spending during bear markets.

    The report also detailed spending for 2023.
    The largest portion, 30.4% or $32.1 million, was allocated to layer-1 research and development initiatives.
    The next largest portion, 27.1% or $28.6 million, was directed towards funding new institutions.
    This includes grants supporting organizations dedicated to the Ethereum ecosystem.

    In the meantime, ETH has performed well.
    It has gained 16.2% over the past week, outperforming Bitcoin’s (BTC) 9.4% increase.
    At the time of writing, ETH is trading at $2,914, a 40% decrease from its all-time high of $4,890.

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