From OTC Sale to Staking Transition: The Evolution Path of the Ethereum Foundation's Treasury Behind the 10,000 ETH Transaction

On April 24, 2026, the Ethereum Foundation confirmed the completion of a transaction that has garnered widespread industry attention: an over-the-counter (OTC) sale of 10,000 ETH to the digital asset vault Bitmine Immersion Technologies, at an average price of $2,387 per ETH, totaling approximately $23.87 million. Following this news, market reactions have subtly shifted compared to years past—panic-driven interpretations have receded, replaced by a deeper examination of the Foundation’s treasury management logic and ETH supply-demand structure. This shift is no coincidence. It reflects the emergence of a new narrative framework within the Ethereum ecosystem after years of controversy, policy adjustments, and institutional participation.

A “Routine Operation” Misinterpreted

On April 24, 2026, the Ethereum Foundation posted a statement on social platform X, confirming that it had sold 10,000 ETH to Bitmine via OTC at an average price of $2,387 per ETH, with a total value of about $23.87 million. The transaction was settled on-chain through a Safe multi-signature wallet controlled by the Foundation, with funds allocated for core operations and activities, including protocol development, ecosystem expansion, and community grants. This sale was not an isolated event. Earlier, in March 2026, the Foundation sold 5,000 ETH to the same counterparty at an average price of $2,042.96, worth about $10.21 million. These two transactions totaled 15,000 ETH, approximately $34.08 million. The Foundation explicitly stated that these transactions are routine operations under its treasury management policy framework approved in June 2025, and do not represent a change in attitude toward Ethereum’s prospects.

From “Selling on Rises” to “Institutionalized Management”

Reviewing the controversial history of the Ethereum Foundation’s ETH sales reveals a clear evolution from casual disposal to institutionalized management. Between 2021 and 2024, the Foundation repeatedly sold ETH at relatively high market prices—for example, in May 2021, when ETH approached $4,000, it sold 35,000 ETH, cashing out about $87 million. These actions gradually fostered a negative perception within the community that the Foundation was “selling on rallies.” Persistent community criticism eventually prompted reforms. In June 2025, the Foundation officially released a treasury management policy document, focusing on three key points: maintaining fiat and stablecoin reserves to cover approximately two and a half years of operational expenses; limiting annual operational spending to within 15% of the treasury size; and introducing staking and DeFi deployment as alternative income sources to reduce reliance on ETH sales. In February 2026, the Foundation further announced the launch of a treasury staking program, initially aiming to stake 70,000 ETH, with staking rewards directly flowing back into the treasury to fund R&D and ecosystem development. By early April 2026, the Foundation had staked approximately 69,500 ETH, nearing that target.

Timeline Overview

Data & Structural Analysis: OTC Transactions and New Variables in Supply-Demand Dynamics

As of April 30, 2026, the circulating supply of ETH is approximately 120.69 million, with a current price of $2,246.19, market cap around $275.69 billion, and 24-hour trading volume of $375.84 million (data source: Gate.io). The OTC sale priced at $2,387 per ETH is about $141 above the current market price, representing a premium of approximately 6.3%. Notably, the Foundation did not offer a discount but transacted at a price slightly above the market, indicating OTC channels can effectively facilitate large-volume trades with reliable price discovery and execution.

Impact of OTC Trades on Market Liquidity

Meanwhile, ETH staking continues to grow. By early April 2026, approximately 38 million ETH are staked, accounting for about 30% of circulating supply. Additionally, ETH balances on centralized exchanges have fallen to their lowest levels since 2016. This structural supply tightening means that even with regular sales by the Foundation, the amount of ETH available for immediate trading is decreasing, providing a buffer for buying demand. On the buyer side, Bitmine’s accumulation pace is also noteworthy. As of April 26, 2026, Bitmine’s total ETH holdings reached over 5,078,386 ETH, accounting for more than 4.2% of circulating supply, just shy of its publicly stated goal of holding 5%. The company recently disclosed staking over 3.7 million ETH, indicating most of its holdings are actively participating in network operations rather than being passively idle.

Public Sentiment Analysis: Shifting Perspectives Behind the Cooling of Controversy

The Foundation’s sales are clearly policy-driven, executed via OTC to avoid direct market sell pressure, with transparent disclosures on fund use. Market interpretations of this event have become polarized, with different stakeholders emphasizing various aspects.

• Rational Tool-Use Camp (from criticism to understanding): Some believe OTC sales are a mature and effective treasury management method. They avoid public exchange sell-offs and can be executed at prices close to or slightly above market, supporting operational needs while minimizing market disruption. This view is common among institutional investors and long-term holders.
• Value-Conservation Camp (cautious about ongoing sales): Some community members and opinion leaders argue that continuous ETH sales—regardless of method—undermine confidence in ETH’s value. An anonymous researcher, 0xfoobar, publicly criticized the Foundation for refusing to pay staff in ETH, calling it “a serious lack of ‘use your own product’ logic.” Notably, the volume of such criticisms has decreased significantly since 2024–2025.
• Institutional Narrative Camp (a signal of supply-demand restructuring): From a macro perspective, OTC channels between the Foundation and Bitmine are constructing a new supply-demand relationship: core ecosystem builders’ sales are being absorbed by institutional buyers. This direct shift from “long-term holders” to “corporate buyers” may be reshaping ETH’s liquidity structure.
• Neutral Observers (focused on structural impacts rather than individual trades): Some analysts point out that the Foundation’s sale volume is tiny relative to ETH’s daily trading volume (often exceeding $10 billion). A single sale of 10,000 ETH accounts for only about 0.03% to 0.25% of daily volume, so its immediate price impact can be absorbed normally by the market.

Industry Impact Analysis: OTC Mode and the Triadic Evolution of Supply-Demand Structures

OTC transactions are reshaping large-asset transfer industry norms

The Foundation’s practice could set a precedent. As institutional holders’ ETH share increases—BlackRock’s iShares Ethereum Trust holds over 3 million ETH, Coinbase’s exchange wallet holds over 4.2 million ETH—OTC is shifting from a supplementary tool to a mainstream execution method. For institutions holding large ETH quantities and needing regular fiat conversions for operations, OTC offers a way to avoid market impact and ensure transaction certainty and compliance.

Supply tightening intensifies buy-sell dynamics

In fact, ETH’s supply side is undergoing a structural contraction. Exchange balances are at multi-year lows, about 30% of total supply is staked, and institutional accumulation continues, favoring locking rather than trading—these three factors create a “shallow liquidity” market environment. In such a setting, a single sell—especially from a symbolic entity like the Foundation—has a psychological impact often exceeding its actual market effect. It’s also worth noting that alongside the Foundation’s sale of 10,000 ETH, ETH spot ETFs experienced significant fund flows. Data shows that around April 22, 2026, U.S. spot ETH ETFs recorded 10 consecutive days of net inflows—the longest since their launch in July 2024. However, by April 27, the ETF shifted to a single-day net outflow, indicating that institutional sentiment is not uniformly optimistic.

Long-term staking strategies by the Foundation can reduce reliance on sales, but short-term substitution is limited

Estimates suggest that staking 70,000 ETH at current annual yields could generate roughly 1,960–2,660 ETH annually (priced in ETH), equivalent to about $4.4–6 million at current prices. Given the Foundation’s historical annual operational costs near $100 million, this yield covers only about 4–6% of yearly expenses. Thus, in the foreseeable future, staking income cannot fully replace ETH sales, and both methods will coexist.

Conclusion

The OTC sale of 10,000 ETH by the Ethereum Foundation, valued at roughly $24 million, appears at first glance as an asset transfer. However, when viewed within the broader context of the Foundation’s evolving treasury management policies and the changing ETH supply-demand landscape, it reveals deeper industry trends. Over recent years, the Foundation’s ETH sales have been a sensitive topic within the community. With the institutionalization of treasury policies in 2025, the large-scale staking program launched in 2026, and ongoing accumulation by entities like Bitmine, the Foundation’s selling behavior is shifting from “reactive controversy” to “proactive management expectations.” The normalization of OTC channels exemplifies this transition—balancing the decentralization ethos with the practical needs of operational transparency and fiat liquidity. For market participants, understanding the core of the Foundation’s selling behavior is less about “whether” and more about “how” and “where the funds go.” In this dimension, OTC mode offers a valuable ongoing observation window.