Ethereum Foundation Capitalizes on Momentum: Is Vitalik Preparing to Sell to BlackRock?
The ETH Foundation (EF) has been offloading modest quantities of Ethereum during crypto market upswings, while BlackRock continues its acquisition spree. The most recent dealings involved 2,800 ETH valued at $12.7 million. According to their statements, these transactions are part of routine treasury management aimed at financing development, research, and events.
Vitalik Buterin notes that these sales enable the ETH Foundation to maintain a neutral stance and mitigate earning yield risks, such as being compelled to take sides during contentious upgrades. Concurrently, BlackRock’s ETH ETF has been amassing significant amounts of institutional capital.
Reasons Behind ETH Foundation’s Sales in Bull Markets
EF’s ETH sales are not reactions to panic or speculative moves; rather, they serve as a means to convert a portion of their assets into cash for operational needs. The treasury policy instituted in June 2025 prioritizes transparency, maintaining sufficient funds for at least 2.5 years of expenditures, and capping annual spending at 15% of its reserves.
Introducing the Ethereum Foundation Treasury Policyhttps://t.co/bU566m1zX5
— Ethereum Foundation (@ethereumfndn) June 4, 2025
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The strategy of selling during significant price surges allows EF to generate funds while minimizing their impact on the overall crypto market.
The recent transaction involving 2,795 Ethereum for $12.7 million aligns with a long-standing practice. EF sells small amounts to finance grants, price floor client teams, and bolster ecosystem protection.
While staking could offer a revenue source, Buterin has pointed out that it may lead to conflicts if EF had to vote on or base level particular upgrades. Currently, EF favors direct sales over locking tokens options.
Historic concerns included (1) regulation, and (2) if EF stakes, it effectively obligates us to take a stance on any future contentious protocol fork.
(1) is less concerning now, while (2) persists. We are certainly looking into ways to mitigate (2).
— vitalik.eth (@VitalikButerin) January 20, 2025
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The majority of the Ethereum Foundation’s assets remain in Ethereum, and their sales are minimal compared to BlackRock ETF’s acquisition of tens of thousands of Ethereum daily. These sales are pre-planned and communicated openly and represent responsible management of the foundation rather than an indication of downtrend sentiment towards Ethereum.
Do ETH Foundation Sales Conflict with BlackRock’s Purchases?
EF’s sales are negligible in the short-term when compared to the substantial buy-ins from BlackRock’s iShares ETH Trust (ETHA) and other funding entities. For instance, BlackRock has seen trading days exceeding $500 million in ETH purchases, significantly overshadowing EF’s $12.7 million sales.
The magnitude of EF’s transactions does not impact institutional demand.
ETFs JUST ACQUIRED $500M WORTH OF ETH
BlackRock just secured $318.7M of Ethereum
Fidelity added $145M of Ethereum
Grayscale obtained $50M of Ethereum. pic.twitter.com/M2CwyBu1H2— Arkham (@arkham) August 13, 2025
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Over time, EF conducts sales at regular intervals, typically during strong price conditions, to limit trading market disruption. Vitalik Buterin emphasized that these sales are about financing the foundation’s activities, not a reaction against ETFs or institutional investments. The perceived overlap with major ETF purchases is more coincidental than competitive.
In the broader context, BlackRock’s ETF now holds billions worth of ETH, reflecting robust institutional confidence. Meanwhile, EF’s sales are in alignment with a strategic policy and financial plan.
Why this could be one of the greatest non-BTC crypto seasons ever:
– ETH on the brink of surpassing its ATH
– Google searches for “altcoin” at their peak since 2021
– ETH/BTC moving upward like in previous cycles
– Institutions holding significant crypto portfolios
– BlackRock maintains $15B in ETH
– US… pic.twitter.com/1pK1MTDA1z— Mags (@thescalpingpro) August 14, 2025
This indicates that both actions can coexist without contradicting each other. In the future, EF may introduce locking tokens if it can do so without compromising its neutrality, but for now, turning small amounts of Ethereum into cash remains its main funding strategy.
Ultimately, both parties appear to have clear strategies in place and are pursuing them without concern about potential conflicts between one another.
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Key Takeaways
The post Ethereum Foundation Sells Into Strength: Will Vitalik Dump on BlackRock? appeared first on 99Bitcoins.
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