Ethereum Foundation sells ETH despite staking 70,000 coins via stablecoin conversion
The Ethereum Foundation (EF) says it will convert 5,000 ETH into stablecoins using CoWSwap’s TWAP feature to fund research, grants, and donations. The move reopens debate over whether EF’s ~70,000 ETH staking initiative can replace prior treasury ETH sales.
EF launched staking in late February 2026 with rewards routed back to the treasury. But the article shows “selling never stopped”:
- Mar 14, 2026: EF completed an OTC sale of 5,000 ETH to BitMine at an average $2,042.96.
- By early April: on-chain activity brought staked ETH close to the 70,000 target (~69,500 ETH).
- Apr 8, 2026: the new CoWSwap conversion highlights that ETH monetization for operating cash and spending still continues alongside staking.
At an ETH price around $2,220.76, converting 5,000 ETH implies roughly $11.1M of sales. The article estimates the full 70,000 ETH staking sleeve could yield about 1,912–2,102 ETH per year (≈$4.25M–$4.67M), which is smaller than EF’s quarterly grant spending noted at $32.6M (Q1 2025), meaning staking rewards are not enough on their own to cover fiat-denominated runway.
EF’s broader treasury modernization has already mixed DeFi deployments and borrowing (including GHO against Aave positions), but the key takeaway for traders is persistent ETH sell pressure signals remain present even after the staking narrative gained traction.
Bearish
Bearish: The article highlights that the Ethereum Foundation’s ETH staking initiative has not eliminated treasury ETH monetization. EF still converts ETH into stablecoins (5,000 ETH via CoWSwap TWAP) to fund grants and operations, and it has already executed an OTC ETH sale while staking ramps toward ~70,000 ETH. That combination implies persistent net sell pressure and undermines the market’s “less selling” expectation.
In the short term, traders may price in continued sell-flow headlines around conversions/OTC blocks, which can cap ETH rallies and increase volatility during funding/earnings-related periods. In the medium to long term, EF’s diversified treasury approach (DeFi deployment + borrowing like GHO against Aave) may improve execution and reduce the *frequency* of large spot dumps, but as long as EF’s runway remains fiat-denominated and staking yields remain smaller than spending needs, periodic ETH sales are likely to continue.
This resembles prior market reactions where “treasury optimization” narratives failed to fully offset ongoing liquidity needs—when sell-side supply remains structurally present, relief rallies often fade unless ETH price strength materially changes the arithmetic (i.e., fewer ETH needed per dollar of spending).