Ethereum Holds $970M in Total Assets With $788M in Crypto

• Ethereum Foundation holds $970.2 million in assets, with $788.7M in Ethereum tokens.
• EF’s 2023 spending includes $47.4M on new institutions and $34.7M on Layer 1 R&D.
• The foundation tightens conflict policies, banning staff from earning illiquid tokens.

The Ethereum Foundation (EF) disclosed its financial position, reporting $970.2 million in combined crypto and non-crypto assets as of October 31, 2024. Of this total, $788.7 million is held in cryptocurrencies, with 99.45% in ether. The holdings represent 0.26% of Ethereum’s total supply. Non-crypto investments amount to $181.5 million.

The foundation confirmed its intention to retain a conservative treasury management approach. The strategy includes converting ether liquidity to fiat during market peaks if the ecosystem requires funding. The EF stressed its long-term view of Ethereum’s growth, maintaining a cautious approach to resource protection during the market downfall.

Transparency and Treasury Policy

Earlier this year, the EF faced community criticism over unexplained ether sales and large transactions. In response, it reiterated its commitment to transparency in treasury management. Further, the organization stressed maintaining its balance between its crypto and fiat holdings to ensure stable funding during market volatility. This includes increasing fiat reserves during bull markets to support spending in bear markets.

The foundation emphasized its goal to support Ethereum’s ecosystem development through funding public goods. By holding a majority of its assets in ether, the EF highlighted its belief in Ethereum’s long-term potential. This strategy aligns with its objective to sustain the ecosystem’s growth despite market fluctuations.

Conflict of Interest Measures

The foundation also addressed concerns about conflicts of interest involving its staff. Following the resignations of Ethereum researchers Justin Drake and Dankrad Feist from their advisory roles at EigenLayer, the EF provided new policy guidelines, which included that staff must report outside engagements and consult with team leads. For work valued above $25,000 annually, internal review is required.

Further, the foundation stated that its employees are prohibited from receiving compensation in unliquid assets like tokens from pre-launch projects. However, in rare cases, they may apply but compensation packages are disallowed. These factors are undertaken to uphold the transparency and integrity of the organization.

2023 Expenditures and Network Growth

According to EF’s 2023 expenditure report, a majority of the $258.6 million was used for funding new institutions, which amounted to $47.4M. In 2022 alone, Layer 1 spent $34.7 million on research and development compared to 2021’s $32.1 million. These are part of its efforts to develop Ethereum’s core infrastructure and stimulate innovation in the ecosystem.

Interestingly, the network activity on Ethereum has jumped. In October, the active addresses climbed to 13.7 million from 12.3 million in September. Meanwhile, the on-chain transaction volume also grew to $108.6 billion in October from $90.9 billion in the previous month. In 24 hours, ether saw a 2.4 percent increase in price to $2,912.