The Ethereum Foundation has sold 5,000 ETH worth close to $11.1 million through CoWSwap, reigniting debate about the balance between staking income and direct asset sales from one of the protocol’s most influential organizations.
Staking and sales move in tandem
The Ethereum Foundation is responsible for funding core research, development, and community grants for the Ethereum ecosystem. As one of the largest holders of ETH, its treasury moves are closely watched by the crypto community.
On April 8, blockchain records showed the foundation exchanged 5,000 ETH for stablecoins using CoWSwap’s automated trading feature. At the time, ETH was trading near $2,221, making the converted amount around $11.1 million.
This follows a similar over-the-counter transaction on March 14, where 5,000 ETH was sold to BitMine at roughly $2,043 per ETH.
Despite a visible increase in staking, with nearly 69,500 ETH locked by April 3, the Foundation’s sales have not stopped. Staking and sales have both been used in parallel, countering the idea that yield strategies would replace asset disposals entirely.
Discussions in online communities earlier this month suggested that the Foundation was no longer selling ETH because of an expanded staking program. This latest large transaction challenges that sentiment, showing that selling has continued alongside other strategies.
Arkham Intelligence reported the Ethereum Foundation’s latest sale, noting that “the Ethereum Foundation just sold 1,250 ETH for $2.80M in DAI,” pointing out the ongoing combination of both staking and selling in its treasury management.
While approximately 70,000 ETH are now staked by the Foundation, this pool generates about 1,900 to 2,100 ETH in yield per year at prevailing rates — valued at $4.2 million to $4.7 million. A single 5,000 ETH sale, in comparison, equates to more than double this entire annual yield.
Grant spending and fiat reserve goals drive sales
The Foundation’s treasury policy is based on maintaining a multi-year operating runway and a significant fiat-denominated reserve. The roadmap funds a wide range of grants, ecosystem development, and operational expenses rather than merely holding ETH passively.
In the first quarter of 2025, grant spending was recorded at $32.6 million, which, converted at current prices, equals roughly 14,700 ETH. The recent 5,000 ETH sale, therefore, covers only about a third of these obligations, not including other costs.
Policies released in June 2025 call for an operating buffer equivalent to 2.5 years of future spending, estimated at about $363.8 million based on the latest disclosed treasury size. This approach means sales occur as needed to keep reserves in line with fiat targets, regardless of ETH price fluctuations.
Although staking rewards and DeFi borrowing provide flexibility, they remain too small relative to total ongoing costs and do not eliminate the need for direct sales.
The Foundation continuously deploys treasury strategies, including DeFi lending and borrowing. For example, in February, it deposited 45,000 ETH into Spark, Aave Prime, Aave Core, and Compound and, in May, borrowed $2 million in GHO using Aave-staked collateral to raise operational funds without immediately liquidating ETH.
However, because its reserve policy is denominated in dollars, a decline in ETH prices forces greater monetization rather than allowing the Foundation to wait out market downturns.
The April 8 conversion highlights that direct ETH sales remain a central tool for the Ethereum Foundation as it seeks to balance grant commitments, research initiatives, and broader ecosystem spending, supported but not fully replaced by yield strategies.
