Ethereum Foundation Explains $94 Million ETH Transfer Amid Market Speculation

• Ethereum Foundation clarifies $94M ETH transfer as treasury management, not a sale.
• Community demands increased transparency after Ethereum Foundation’s undisclosed ETH transfer.
• ETH price shows resilience despite concerns over Ethereum Foundation’s financial strategies.

The Ethereum Foundation has recently addressed concerns from the cryptocurrency community following the transfer of 35,000 ETH, worth around $94 million, to the Kraken exchange. This transaction, disclosed without prior notice, triggered significant speculation about its impact on the market and the Foundation’s financial strategies.

In a recent statement, Aya Miyaguchi, Executive Director of the Ethereum Foundation, clarified that the transfer was part of the Foundation’s treasury management operations, not an outright sale. The Foundation manages a yearly budget of approximately $100 million, primarily for grants and salaries. 

Miyaguchi highlighted that the Foundation had delayed its treasury activities this year due to regulatory challenges, which restricted their ability to move funds earlier. This delay resulted in the transaction being executed without prior notice to the community.

She stressed that the transfer was part of a planned, gradual sales strategy to maintain the Foundation’s financial health while minimizing potential market disruptions.

The Ethereum community reacted strongly to this large transaction’s lack of transparency. Many members voiced frustration over the Foundation’s infrequent financial disclosures, arguing that better communication could prevent the kind of market speculation and fear, uncertainty, and doubt (FUD) that followed the transfer.

There have been growing calls within the community for the Foundation to provide more regular updates, including quarterly reports detailing expenses, expected sales, and other financial activities. 

Analysts attribute this price recovery to broader macroeconomic factors, including Federal Reserve Chair Jerome Powell’s recent remarks about controlling inflation and the potential for future interest rate cuts.

However, the uncertainty surrounding the Ethereum Foundation’s future sales strategy and the recent outflows from U.S.-based spot Ether ETFs, which saw $5.70 million withdrawn, could pose challenges to the sustainability of ETH’s current price momentum.

According to data from Arkham Intelligence, the Foundation still holds substantial reserves, including 273,776 ETH and 31,015 WETH, valued at approximately $840 million.

As the Foundation proceeds with its treasury management activities, the community will likely demand greater transparency and consistent communication to avoid future market disruptions.