The post ETH Foundation Limits Treasury as WisdomTree Fund Hits $300M appeared on BitcoinEthereumNews.com.

Ethereum is undergoing a period of financial evolution on two major fronts. The Ethereum Foundation has announced a stricter, more transparent treasury management policy to extend its operating runway and improve accountability. At the same time, WisdomTree’s Ethereum-based money market fund, WTGXX, has quietly reached $300 million in assets under management, reflecting growing confidence in decentralized finance among institutional investors. Ethereum Foundation Tightens Treasury Strategy as Pivotal 18-Month Period Begins In a June 4 update, Ethereum Foundation director Hsiao-Wei Wang revealed that the organization’s cash runway is limited to just 2.5 years at current spending levels, prompting a major reassessment of how its vast treasury, primarily composed of Ether (ETH), is managed. “This policy reflects our conviction that 2025–26 are likely to be pivotal for Ethereum, warranting enhanced focus on critical deliverables,” Wang stated. The renewed focus underscores a turning point for the Foundation, which has faced community scrutiny for its recent, and somewhat opaque, ETH sales that raised questions about its financial stewardship and commitment to decentralization. Transparent Framework Tied to ETH Reserves The new policy will systematically tie the EF’s operational costs and liquidity needs to its ETH holdings, providing a buffer against market volatility and giving the Foundation flexibility in leaner market conditions. Key financial metrics, such as the percentage of ETH reserved for operations and years of projected runway, will be reassessed on a rolling basis, taking into account market dynamics and ongoing community feedback. This level of fiscal self-awareness is a strategic shift for the EF, which has historically maintained a “credible neutrality” posture that limited its active participation in DeFi or direct funding of ecosystem protocols. The move toward transparency comes after community backlash over surprise ETH sales in late 2024 and early 2025, which critics claimed eroded trust and created speculation around the…

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Filed under: News - @ June 5, 2025 11:29 am