The first report from the Ethereum Foundation has been released. The report not only assists the Foundation in communicating its mission to the community but also delves into its $1.6 billion in treasury assets. The foundation also revealed its expenditures after selling a chunk of its Ethereum holdings at the peak of the rally.
The foundation’s treasury was estimated to be at $1.6 billion as of March 31, 2022, according to the report. Cryptocurrencies made up the majority of its holdings, with non-crypto assets accounting for only $300 million.
Ethereum accounts for 91% of the foundation’s cryptocurrency assets, accounting for over 0.3 percent of the total Ethereum supply. The fund’s manager noticed that they have a conservative treasury management policy, implying that funds are betting on Ethereum’s long-term profitability while maintaining the ability to fund all of their objectives even if the market goes down for years.
Despite being pro-Ether, the foundation liquidated a portion of its crypto holdings at the peak in favor of non-crypto savings. Insider trading was suspected by several members of the Ethereum community. According to the report, the foundation chose to sell Ether in favor of non-crypto assets due to high ETH prices.
Amid the current market conditions, the fund continues to maintain a large amount of Ether in its treasury because it believes in the second-largest cryptocurrency’s long-term potential.
Layer 1 research and development accounted for the majority of the fund’s spending. According to the report, they spent over $22 million while spending only $2 million on Layer 2 research and development. Community development came in second, with the foundation spending about $10 million.
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