Ethereum Foundation Discloses $970M Assets in 2024 Financial Report

TLDR

Ethereum Foundation holds $970.2M in assets as of October 2024, with $788.7M in crypto
99% of crypto holdings are in ETH, showing strong commitment to the ecosystem
Foundation implements new conflict of interest policy in 2024
ETH price nears $3,000, up 16.2% over past week
Foundation spent 30.4% ($32.1M) on layer-1 R&D in 2023

The Ethereum Foundation (EF) released its 2024 financial report today, revealing total assets of $970.2 million as of October 31, 2024.

The report provides a detailed breakdown of the foundation’s holdings and spending patterns, highlighting its continued commitment to the Ethereum ecosystem.

According to the 27-page document, the foundation’s assets are divided between $788.7 million in cryptocurrency holdings and $181.5 million in non-crypto investments and assets.

A key revelation from the report shows that 99% of the foundation’s crypto treasury is held in ETH, representing approximately 0.26% of Ethereum’s total supply.

The foundation explained its rationale for maintaining such a large ETH position, stating,

“We choose to hold the majority of our treasury in ETH. The EF believes in Ethereum’s potential, and our ETH holdings represent that long term perspective.”

To ensure sustainable operations, the foundation has implemented what it calls a “conservative treasury management policy.”

This approach involves periodic sales of ETH to maintain adequate resources for future operations, particularly during potential market downturns.

The report detailed the foundation’s strategic approach to treasury management, noting that it “programmatically” increases fiat savings during bull markets to support spending during bear markets.

This method aims to ensure the organization can continue funding important public goods for the Ethereum ecosystem regardless of market conditions.

Looking at the foundation’s 2023 expenditures, the largest allocation went to layer-1 research and development initiatives, accounting for 30.4% of spending or $32.1 million.

The second-largest category was funding for new institutions, which received 27.1% of the budget, equivalent to $28.6 million. These funds primarily supported organizations dedicated to advancing the Ethereum ecosystem.

The foundation introduced a new conflict of interest policy in 2024, establishing boundaries for team members regarding their interactions with the broader ecosystem.

This policy is scheduled for review after its first year of implementation to incorporate feedback and potential adjustments.

Various teams within the foundation contribute to different aspects of the ecosystem’s development. The Robust Incentives Group (RIG) focuses on studying mechanism design and cryptocurrencies for Ethereum.

The Protocol Support team oversees network maintenance, while the Devcon team organizes events promoting collaboration and education within the community.

The foundation’s grant program continues to play a vital role in ecosystem development. Several organizations receive support through these grants, including Argot Collective, Geodework, L2BEAT, Nomic Foundation, and 0xPARC. The foundation’s teams participate actively in the approval and evaluation processes for these grants.

As the report was released, Ethereum’s native token ETH traded near the $3,000 mark, showing strong market performance with a 16.2% increase over the past week.

This growth outpaced Bitcoin’s 9.4% gain during the same period, though ETH remains about 40% below its all-time high of $4,890.

The foundation’s Executive Director, Aya Miyaguchi, highlighted the organization’s ongoing efforts to enhance the Ethereum ecosystem through its various initiatives and support programs. The report emphasizes the foundation’s role in maintaining long-term ecosystem development while ensuring financial stability.

Recent developments include the launch of the foundation’s first short-lived Pectra testnet, named ‘Mekong,’ demonstrating continued technical progress in the ecosystem. As of the latest market data, ETH traded at $2,901 with a daily trading range between $2,781.30 and $2,954.87.