The Ethereum Foundation has announced it will sell 10,000 ETH, worth about $43 million, to fund ongoing research, ecosystem grants, and donations.
Key Takeaways
- 10,000 ETH worth $43 million will be sold gradually on centralized exchanges over several weeks.
- The sale supports the Ethereum Foundation’s new treasury policy established in June 2025.
- Proceeds will fund research, development, grants, and donations, continuing the foundation’s ecosystem support.
- The move has sparked criticism from DeFi proponents, who advocate for decentralized or OTC alternatives.
What Happened?
The Ethereum Foundation revealed on Tuesday that it would sell 10,000 ETH using centralized exchanges in smaller transactions rather than a single bulk trade. The ETH conversion, estimated at $43 million based on current prices, aims to support the foundation’s research, grants, and donation initiatives.
This sale is part of the foundation’s broader treasury strategy introduced in June 2025, which regulates spending and promotes long-term financial stability through systematic asset management.
0/ Transparency Notice: Over several weeks this month, EF will convert 10K ETH via centralized exchanges as part of our ongoing work to fund R&D, grants, and donations.
— Ethereum Foundation (@ethereumfndn) September 2, 2025
Conversions will take place over multiple smaller orders, rather than as a single large transaction.
Ethereum Foundation’s Updated Treasury Strategy
The foundation’s newly adopted treasury policy has introduced a structured approach to ETH conversions. According to the policy, the foundation must periodically evaluate the deviation in fiat-denominated assets and decide on ETH sales for the following three months. The goal is to maintain a reserve buffer and limit operational spending to no more than 15 percent annually.
This $43 million sale marks the second major ETH liquidation since the policy’s implementation. In July, the foundation sold another 10,000 ETH directly to SharpLink Gaming, a company linked to Ethereum co-founder Joseph Lubin.
The policy has also influenced internal adjustments, including a temporary pause on open grant applications as part of a broader grant process overhaul. In Q1 2025 alone, over $32 million in grants were distributed to support education and community initiatives.
Community Reaction and Criticism
While the sale aligns with the foundation’s internal policy, it has drawn criticism from parts of the Ethereum community. Some builders and DeFi supporters expressed concern over the use of centralized exchanges.
Gnosis co-founder Martin Koppelmann questioned the need for centralized trading venues, asking, “What’s missing from DEXs to do it via DEXs?” Others proposed that the foundation explore DeFi-native lending platforms like Aave, or over-the-counter deals with corporate treasuries.
Critics argue that relying on centralized exchanges for large sales could undermine community confidence and transparency. Josiah Gulden, a product designer connected to Compound, suggested that selling instead of borrowing against ETH could signal a lack of faith in ETH as a treasury asset.
Despite these concerns, defenders of the centralized approach point to better liquidity, risk mitigation, and minimized market impact as practical reasons for using CEXs. The foundation has not disclosed the specific exchanges, execution timelines, or price targets.
Market Context and Other Major ETH Transactions
This sale is occurring against the backdrop of significant ETH market activity. Ethereum hit a new all-time high of $4,866 in August and currently trades around $4,465, reflecting a 21 percent increase in the past month.
Other notable transactions include:
- Yunfeng Financial Group purchasing 10,000 ETH on the open market, independent of the foundation’s plans.
- Ether Machine acquiring 150,000 ETH, building a substantial ETH treasury ahead of a planned Nasdaq listing. The firm now holds more than 345,000 ETH worth $1.5 billion.
These large movements are contributing to ETH’s ongoing price volatility, with speculation that institutional interest may fuel further price appreciation. Ethereum co-founder Joseph Lubin recently suggested that increased Wall Street adoption could help ETH surpass Bitcoin as a monetary base.
CoinLaw’s Takeaway
In my experience, this type of planned asset sale by the Ethereum Foundation is nothing new, but it always draws attention. What makes this instance particularly interesting is how it highlights the tension between centralized practicality and decentralized ideals. While the foundation is simply managing its funds responsibly under a formal policy, the reaction from the DeFi community shows just how deeply values around transparency and decentralization run in this space.
I found it surprising that the EF did not opt for at least a partial DeFi-based solution. It could have helped build trust, especially after pausing grants. Still, the structured treasury approach shows maturity. It is a sign that Ethereum is evolving, not just as a protocol but as an institution.
