Ethereum Foundation to Sell 10.000 ETH on CEX to Fund Grants

• Ethereum Foundation to Convert $43 Million to ETH
• Sale will fund research, grants and donations in the ecosystem
• Decision sparks criticism over use of centralized exchanges

The Ethereum Foundation announced plans to convert 10.000 ETH, valued at approximately $43,6 million, through centralized exchanges this month. According to the organization, this measure is part of its routine funding process for research, grants, and donations for the Ethereum ecosystem.

In a statement on X, the foundation explained that the conversions will occur in multiple smaller orders, avoiding single block execution to reduce market impact. The announcement echoes a June post on its treasury policy blog, which details how ETH is periodically converted to cover fiat-denominated operating expenses.

0/ Transparency Notice: Over several weeks this month, EF will convert 10K ETH via centralized exchanges as part of our ongoing work to fund R&D, grants, and donations.

Conversions will take place over multiple smaller orders, rather than as a single large transaction.

— Ethereum Foundation (@ethereumfndn) September 2, 2025

Despite the justification, the decision received criticism from the community. Martin Koppelmann, co-founder of Gnosis, asked: "What are DEXs missing for this to be done through them?" Other participants suggested alternatives such as ETH lending through DeFi protocols, OTC agreements with corporate treasuries, or even on-chain sales using dollar-cost averaging, which would allow for greater transparency and community participation.

Curious- what's missing from DEXs to do it via DEXs?

— koeppelmann.eth 🦉💳 (@koeppelmann) September 3, 2025

Josiah Gulden, a Compound designer and former Meta engineer, stated that “there are better ways to raise liquidity than dumping on the open market,” arguing that selling instead of lending “doesn’t exactly inspire confidence in EF’s view of ETH as a treasury asset.”

DeFi borrowing. private credit. OTC sales. there are better ways to get liquidity than dumping on the open market.

moreover, selling instead of borrowing doesn't exactly instill confidence in EF's outlook on ETH as a treasury asset. please find a competent, aligned CFO.

— Josiah Gulden (@jgulden) September 2, 2025

Still, proponents of the CEX strategy point out that centralized exchanges offer liquidity and settlement tools capable of reducing operational risks and slippage in large trades. According to them, splitting orders also helps limit price pressures, unlike single block movements.

The foundation did not detail which platforms will be used, nor the exact timelines or planned price levels for the implementation. This is not the first time the Ethereum Foundation has resorted to converting large amounts of ETH: on previous occasions, it has conducted similar sales to fund its operations and sustain ecosystem development.