Ethereum Foundation Holds $1.6 Billion in Assets, 80.5% Held in Ether

Ethereum Foundation Holds $1.6 Billion in Assets, 80.5% Held in Ether

 

The Ethereum Foundation (EF) published a financial report on Monday that shows the foundation currently holds $1.6 billion in its treasury. $1.3 billion of the treasury’s assets are held in cryptocurrencies, while the rest of the treasury is composed of non-crypto investments and assets.

The Ethereum Foundation is a non-profit organisation, dedicated to fostering growth within the Ethereum ecosystem. The EF's April 2022 published report explains that the various ways the EF bolsters the Ethereum environment.

EF creates teams focused on improving Ethereum and the network’s ecosystem. The foundation provides projects with grants to fund other teams outside of the core EF teams. It manages delegated domain allocation, and it also leverages third-party funding techniques.

After explaining what the Ethereum Foundation is and what it does, the April 2022 report discusses the EF treasury and financials. According to the EF, it currently holds $1.6 billion in its treasury, and $1.3 billion of that is composed of digital currencies like ethereum (ETH).

The EF report reveals that the foundation holds 80.5% of its crypto holdings in ether, which represents 0.297% of the total ether supply. Even during multi-year crypto market downturns, the non-profit allocates a "conservative treasury" that’s "immune to the changes in the price of ethereum."

The reason why EF is holding so much ether is because it represents the non-profit’s belief in Ethereum’s future potential, and the holdings "represent that long-term perspective." 

The EF report also disclosed expenditures relating to the last year. The non-profit organisation spent an aggregate of around $48 million, and $20 million of the total spent was directed at "external spending" such as grants.

The remaining balance funds teams and projects in the Ethereum ecosystem. The entire spending balance was placed into unique categories, which included layer one (L1) and layer two (L2) research and development (R&D), applied ZK research, community development, and internal operations spending.

The Ethereum Foundation, as Bitcoin.com News recently reported, is one of many organisations that hold ether in a treasury. The report also showed 12 different companies holding close to $700 million worth of ethereum on their balance sheets.