Ethereum Foundation treasury expanded to 19% in non-crypto assets

The Ethereum Foundation (EF) has released a report detailing how its $1.6 billion fund is mostly made up of ETH, but non-crypto assets make up a staggering 18.8%.

In total, the Ethereum Foundation, the non-profit that manages funding for Ethereum’s development, holds 0.3% of the current total supply of Ethereum, totaling about $1.3 billion, as verifiable on Etherscan. However, its non-cryptocurrency holdings accounted for a significant share, amounting to $302 million.

The April 2022 report, the first published by the foundation, outlines assets held in its treasury and how spending has been distributed, including grants to various ethereum-based projects. All in all, the Ethereum Foundation appears to be on a very strong financial footing, spending just $48 million in 2021.

Ethereum Foundation treasury as of April 2022

The company has increased its non-cryptocurrency holdings to $302 million from a previously undisclosed amount, the report said. The funding is intended to provide a "greater margin of safety" to protect it from a downturn in the crypto market.

The foundation did not immediately respond to a request to disclose details of the non-cryptocurrency holdings. However, Ethereum researcher Justin Drake stated in a tweet on April 18 that the non-cryptocurrency holdings are only fiat reserves.

Ethereum Foundation to spend $48 million in 2021

It holds 350,000 ETH ($1 billion) and $300 million in fiat

— Justin Ðrake (@drakefjustin) April 18, 2022

The foundation spent $21.8 million on Tier 1 (L1) research and development, its largest share of spending last year. This figure does not include the ongoing planned Customer Incentive Program (CIP), which rewards nine specific node operators with 39,168 ETH ($132 million) for a fixed period of time.

It also spent $9.7 million on community development, $5.9 million on Ethereum as a developer platform, $5.1 million on international operations, and $3.6 million on ZK (zero-knowledge) R&D. $1.9 million was spent on the second layer (L2) R&D.

As far as I know, this is the first time the Ethereum Foundation has publicly detailed all of their fund holdings.

— sassal.eth (@sassal0x) April 18, 2022

The Ethereum Merge (The Merge) will take place in a few months, when the Ethereum mainnet will transition to the Proof-of-Stake (PoS) consensus algorithm, which is expected to significantly reduce the network’s energy requirements and carbon footprint.

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