Ethereum Foundation Unstakes $40 Million in ETH Following Staking Milestone

The Ethereum Foundation (EF) has initiated the unstaking of 17,035.326 ETH, valued at approximately $40 million. According to on-chain data from Arkham, the foundation utilized Lido’s unstETH contract to move wrapped staked ETH (wstETH) out of its locked position, with the assets expected to be released upon completion of the withdrawal queue. This withdrawal follows a period of aggressive staking activity that began in June 2025. At that time, the EF stated that participating in staking and decentralized finance (DeFi) would provide necessary funding for protocol research, development, and ecosystem grants. The foundation had steadily increased its holdings since February, with significant additions in March and earlier this month. These transactions brought the total staked balance to roughly 69,500 ETH, nearly reaching the foundation's internal goal of 70,000 ETH. While the EF has not provided an official reason for the unstaking, market participants have speculated that the move could precede a sale of assets. Additionally, the action highlights ongoing governance concerns; co-founder Vitalik Buterin has previously noted that large-scale staking by the foundation could compromise neutrality during contentious network hard forks where competing chains may emerge.