The Ethereum Foundation is set to convert approximately $11 million worth of ether (ETH) into stablecoins in the coming days. This move is part of the organization’s broader strategy to finance research, development, and grant programs intended to support the Ethereum ecosystem.
Conversion planned via CoWSwap platform
According to a recent statement, the Ethereum Foundation will utilize the time-weighted average price (TWAP) feature on the CoWSwap platform to convert roughly 5,000 ETH to stablecoins. The Foundation had previously used a similar TWAP process for a 1,000 ETH transaction in October of last year, demonstrating a gradual approach when liquidating holdings.
Staking and over-the-counter transactions in focus
Historically, each of the Foundation’s TWAP sales through CoWSwap has remained below $1 million per transaction, with proceeds typically transferred from wallets classified under the “Ethereum Foundation DeFi Ecosystem.” Facing prolonged public scrutiny, the Foundation has notably shifted away from continually selling ETH to fund its operations.
Last year, the Foundation announced that it would limit ETH sales and instead prioritize capital allocation to DeFi protocols and generating income through ETH staking. In January 2025, the organization moved 50,000 ETH into its ecosystem wallet in line with this new approach. This strategy is designed to diversify both operational funding sources and the Foundation’s exposure to various assets.
Building on this approach, the Foundation disclosed earlier this month that it had staked a total of 47,050 ETH, bringing it closer to its overall target of 70,000 ETH. In March, it executed an over-the-counter (OTC) sale of 5,000 ETH to BitMine Immersion Technologies, marking its second recorded OTC transaction involving institutional treasury buyers. A similar move took place in July 2025, with 10,000 ETH sold to SharpLink Gaming.
Data from Arkham Intelligence shows the Foundation currently holds approximately 102,000 ETH in its main wallet, valued at around $228 million. The wallet also contains 21,000 AETHWETH (worth an estimated $47 million), 6,000 WETH (worth $14 million), along with DAI and USDC reserves totaling about $1 million.
Ethereum co-founder Vitalik Buterin has also recently engaged in sizable ETH sales, converting significant portions of his personal ETH holdings to stablecoins. Buterin’s sales reportedly aim to fund open-source initiatives, signaling strong backing for ongoing development within the Ethereum ecosystem.
Most recently on Tuesday, the Foundation transferred $70,000 worth of ETH to its dedicated grant funding address. This marked the first significant movement of funds following the Foundation’s decision to stake ETH on the Ethereum Beacon Chain, and is presented as a sign of continued commitment to supporting community-driven projects.
In previous statements, Foundation representatives emphasized, “Our evolving financial practices aim to ensure the long-term sustainability of Ethereum’s development and broader ecosystem.”
The Foundation’s funding mechanisms have drawn mixed reactions from the community. While many have welcomed the shift away from routine ETH liquidations, others continue to call for greater transparency regarding treasury management and disbursements.
Analysts note that the Foundation’s approach reflects the broader maturation of the Ethereum ecosystem, as it seeks to balance effective resource allocation with long-term sustainability. Utilizing tools like CoWSwap’s TWAP function allows for more controlled and less market-disruptive conversions.
Looking ahead, industry observers suggest that the Foundation’s stable, diversified financial strategy could facilitate more resilient funding for research, grants, and ecosystem initiatives—particularly as the crypto market remains volatile.
