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Another $32M ETH Gone: Is the Ethereum Foundation Dumping Too Much?
In a staggering move, the Ethereum Foundation has transferred a whopping $32 million worth of Ether (ETH) to a treasury wallet in just three weeks. On-chain data reveals that the organization has been moving 1,000 ETH daily from June 10 to July 1, totaling an astonishing 13,000 ETH – one of its fastest sell cycles in recent years.
It’s no secret that the Ethereum Foundation has historically funded operations by selling ETH. In 2022 and 2023, it sold around 15,000-20,000 ETH annually. However, moving 13,000 ETH in under a month now shows a faster drawdown than its historical pace.
Blockchain trackers confirm that the transferred ETH was sent to a Gnosis Safe multisig wallet, a standard security measure. Treasury reports further reveal that these funds typically reach fiat through regulated OTC desks, rather than open market dumps. Despite this fresh outflow, the Foundation still holds an estimated 94,000-97,000 ETH and around $120-$130 million in fiat and stablecoins. This brings its total treasury near $250-$300 million at current prices. In supply terms, the Foundation controls less than 0.1% of Ethereum’s circulating supply of approximately 120 million ETH.
Some community members have questioned whether the Foundation should be staking its ETH instead of selling it outright. At present yields averaging 3%-4%, staking could generate $7-$10 million in passive income annually if the entire treasury were staked. However, Vitalik Buterin, Ethereum co-founder, defended the sales in April 2025, arguing that large-scale staking could complicate governance if forks occur and also citing legal uncertainty around whether staked ETH would be considered a security.
Buterin stated that these concerns have eased somewhat, and as of February, the Foundation began testing DeFi lending with $120 million deployed to Aave, Spark, and Compound. It also borrowed $2 million in GHO stablecoin to expand its yield options. Furthermore, the Foundation adopted its first formal Treasury Policy in June, capping annual operating expenses at 15% of assets and targeting a 5-year funding buffer.
The plan aims to reduce spending dependence on reserves over five years. The next quarterly treasury report is due in September 2025, which will provide clarity on how these funds are being used.
Source: coinchapter.com
