The Ethereum Foundation (EF) has initiated a fresh conversion of 5,000 ETH, valued at approximately $11 million, into stablecoins through the decentralized exchange Cowswap using a Time-Weighted Average Price (TWAP) mechanism. The funds are intended to support operational expenses and grant programs, marking EF’s first TWAP-based sale since October 2025, when it sold 1,000 ETH via the same method.
TWAP Strategy Reduces Market Impact
Blockchain analytics firm Arkham Intelligence tracked the transactions, noting that each TWAP tranche was kept below $1 million to avoid sharp price movements. The wallet involved is linked to the foundation’s decentralized finance (DeFi) operations. This step follows years of criticism over EF’s routine ETH sales, and reflects a deliberate effort to minimize market disruption while maintaining liquidity.
In addition to the TWAP sale, EF has conducted over-the-counter (OTC) trades, including a 5,000 ETH sale to Bitmine Immersion Technologies in March 2026 (worth $10.2 million) and a 10,000 ETH sale to Sharplink Gaming in July 2025. These transactions complement a broader shift toward staking and yield generation as primary funding sources.
Staking Progress Nears 70,000 ETH Goal
EF has ramped up its staking activities significantly. Recent disclosures show the foundation has staked 69,500 ETH, approaching its stated target of 70,000 ETH. In January 2025, EF allocated 50,000 ETH to a DeFi-focused wallet to begin the transition. A major deposit of approximately 45,034 ETH on April 3, 2026, valued at $93 million, pushed total staked amounts close to the goal.
Staking provides EF with a sustainable yield stream, reducing reliance on direct asset sales. The foundation’s primary wallet still holds around 102,000 ETH (~$228 million), along with 21,000 AETHWETH (~$47 million) and 6,000 WETH (~$14 million). Stablecoin reserves remain modest at roughly $1 million in DAI and USDC.
Vitalik Buterin Follows Suit
Ethereum co-founder Vitalik Buterin has also been converting significant amounts of ETH into stablecoins in recent months, aligning with his commitment to fund open-source initiatives. This parallel activity underscores a broader strategic shift within the Ethereum ecosystem toward more predictable and stable funding mechanisms.
Overall, the Ethereum Foundation is evolving its treasury management from a model heavily dependent on ETH sales to a diversified approach incorporating staking, DeFi exposure, and targeted OTC transactions. Analysts suggest that if staking yields remain robust, EF may further reduce its public market ETH sales, potentially easing price pressure on the asset.