Ethereum Foundation Plans 10,000 ETH Sale to Fund Grants

• The Ethereum Foundation starts a 10,000 ETH sale worth $43M to support grants and research.
• The staged sale will take place in smaller orders over several weeks on exchanges.
• Institutions like Ether Machine acquired large amounts worth billions this week.

The Ethereum Foundation has announced the sale of 10,000 Ether, worth about $43 million. The sale will take place over several weeks through multiple smaller orders rather than a single large trade, ensuring liquidity for ecosystem funding while reducing the potential for sudden market shocks. The foundation confirmed that the capital will support research, development, grants, and donations across the Ethereum ecosystem.

A Framework for Ecosystem Development

EF said the proceeds will underwrite its mission to strengthen Ethereum’s growth pipeline. Funds will go into research, technical development, and community support. In the first quarter of 2025, the foundation distributed more than $32 million in grants, including those directed at education and grassroots initiatives. On August 29, however, EF temporarily paused open grant applications, explaining that the pause was linked to efforts to improve the overall grant process.

The sale is structured under EF’s treasury policy introduced in June. The policy requires EF to calculate quarterly deviations in its fiat-denominated holdings and then determine how much Ether will be sold within the next three months. It also caps operational spending at 15% annually. It requires the maintenance of a multi-year reserve buffer, a design meant to secure predictable cash flow while insulating Ethereum’s development work from volatility.

Since this framework was adopted, EF has completed several sales. The foundation sold $25 million in Ether to SharpLink Gaming and carried out two additional transactions totaling 2,795 ETH, valued at around $12.7 million.

Market Implications and Institutional Interest

Although the current sale will be executed in smaller batches, traders remain cautious. Large foundation sales often attract attention because they have previously aligned with local price tops, sparking speculation about near-term valuations. 

Meanwhile, other institutions are stepping into the market. Yunfeng Financial Group confirmed the purchase of 10,000 ETH on Tuesday, a transaction unrelated to EF’s sale but notable for its scale. At the same time, Ether Machine revealed that it secured 150,000 ETH, as part of treasury-building efforts ahead of a planned Nasdaq listing. With this acquisition, Ether Machine will hold about 495,362 ETH in total.

Ethereum’s market momentum provides further context. Co-founder Joseph Lubin said over the weekend that Wall Street’s adoption of ETH could one day allow it to surpass Bitcoin as a “monetary base.” Adding to this momentum, Federal Reserve Chair Jerome Powell suggested possible adjustments to U.S. monetary policy in late August, contributing to a surge in ETH above $4,870 before stabilizing around $4,330 in early September.

Related: BitMine Doubles Down on Ethereum With $8.1B Holdings, $623M Cash

Treasury Diversification or Cautionary Signal?

Converting Ether to fiat or stablecoins enables EF to secure dependable funding for its operational and development needs. EF’s sales, however, carry a different weight. They are closely tracked as foundation transactions and are often taken as indicators of confidence, or the lack of it, in prevailing prices. Even if anticipated, large-scale selling from institutional or foundation wallets can quickly alter market psychology.  

Is EF’s action a diversification approach to protect growth or a quiet indication of worries about the short-term price outlook of Ethereum? The answer will influence not only how EF’s treasury actions are perceived but also how market participants interpret the future of foundation-led token sales.