Ethereum Foundation clarifies $94 million ETH transfer

The Ethereum Foundation recently addressed investor concerns following a large ETH (CRYPTO:ETH) transfer by the organisation that sparked bearish sentiments in the crypto community.

The foundation moved 35,000 ETH, valued at approximately $94 million, to the Kraken exchange on Friday, leading to widespread speculation about the potential impact on the Ethereum market.

Given the Ethereum Foundation’s significant role in supporting the Ethereum network’s technological development, the transfer raised alarms among investors. 

Many feared that the transaction signaled a selloff, which could negatively affect ETH prices.

However, in an X post on Saturday, Aya Miyaguchi, Executive Director of the Ethereum Foundation, clarified that the transaction was not a direct sale. 

Instead, she explained that the ETH was exchanged for fiat currency to fulfill specific obligations related to the foundation’s treasury management.

Miyaguchi highlighted that this move was necessary due to regulatory constraints that had previously limited the foundation's ability to conduct treasury activities.

Miyaguchi stated, “EF has a budget of ~$100m per year, which is largely made up of grants and salaries, and some of the recipients are only able to accept in fiat. This year, there was a long period of time when we were advised not to do any treasury activities due to the regulatory complications, and we were not able to share the plan in advance.”

Before this recent transfer, the Ethereum Foundation had already been gradually offloading ETH throughout 2024. 

Earlier in the year, the foundation sold 2,516 ETH for $7.4 million DAI. 

Miyaguchi emphasised that these transactions are part of a “planned and gradual” strategy for managing the foundation’s finances.