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Ethereum Foundation Sells 5,000 ETH: Why This $10 Million Move Is Actually Long-Term Growth Signal

Wed, 8/04/2026 - 16:13
Ethereum Foundation sells 5,000 ETH for stablecoins, but the 70,000 ETH staking surge tells a different story.
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Ethereum Foundation Sells 5,000 ETH: Why This $10 Million Move Is Actually Long-Term Growth Signal
Cover image via U.Today

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The Ethereum Foundation, the key organization behind the second largest cryptocurrency, has officially confirmed the start of an operation to exchange 5,000 ETH into stablecoins — specifically DAI. 

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According to the organization’s official account, the transaction is being carried out as part of an updated treasury policy to ensure uninterrupted funding for research grants and charitable initiatives.

Ethereum Foundation activates new treasury model

To avoid pressure on the market price and eliminate news-driven manipulation, the foundation stated that it is using a TWAP mechanism via the CowSwap protocol, which Vitalik Buterin — one of the key figures behind Ethereum — actively uses himself.

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This sale is not a random impulse but rather part of a systemic plan presented back in June 2025 as part of the updated Treasury Policy Foundation. Its key points include:

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  • Maintaining a stablecoin liquidity reserve covering 2.5 years of operating expenses.
  • Reducing annual spending from the current 15% to 5% of the total treasury by 2030. 
  • Increasing the share of staking, with a target of 70,000 ETH — a level that was reached earlier this spring — aimed at funding grants exclusively through network rewards from staked Ethereum.

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At the moment, around $290 million in various assets are still accumulated in the foundation’s public wallets, according to Arkham data, of which $225.7 million is held in Ethereum tokens, representing 102,377 ETH at the time of writing.

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Ethereum Foundation portfolio, Source: Arkham

However, as the foundation itself notes, as developer grants are paid out, the portfolio will gradually be depleted, meaning the share of Ethereum in it will decline.

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