Ethereum co-founder Vitalik Buterin reduces Ether holdings by 17,000 tokens to fund privacy projects from global wallets

Ethereum co-founder Vitalik Buterin has quietly trimmed his Ether (ETH) balance by around 17,000 tokens in February, following his announcement that he plans to dedicate roughly $45 million worth of ETH to privacy-focused projects.

According to onchain analytics from Arkham Intelligence, Buterin’s tracked wallets held about 241,000 ETH at the start of the month.

As of now, the combined balance has dropped to roughly 224,000 ETH, reflecting a mix of strategic outflows and smaller, carefully routed sales.

Strategic Selling to Minimize Market Impact

Buterin’s recent sales were carried out using the decentralized exchange aggregator CoW Protocol, with multiple smaller swaps rather than one large transaction.

This approach is designed to reduce sudden market shocks and preserve trading stability — a method often employed by high-profile crypto holders.

Earlier in the month, he sold around 2,961 ETH, equivalent to about $6.6 million over three days.

Analysts note that in the past three days alone, he sold an additional $7 million worth of ETH, indicating a steady, gradual deployment rather than a panic move.

Funding Privacy-Preserving Technologies

The reason behind Buterin’s ETH outflows is a deliberate, forward-looking initiative.

In January, he revealed plans to set aside 16,384 ETH (roughly $45 million) from his personal holdings to support open-source privacy technologies, secure software and hardware systems, and projects aimed at self-sovereign tools for personal and public protection.

Buterin described the effort as complementary to the Ethereum Foundation’s “mild austerity” period, allowing him to personally champion initiatives that might otherwise be handled by the foundation.

His goal is to develop a full stack of verifiable, open-source hardware and software capable of safeguarding both digital and real-world environments.

“Specifically, we are seeking the existence of an open-source, secure and verifiable full stack of software and hardware that can protect both our personal lives and our public environments,” he stated.

Ether Price Declines Amid Market Volatility

Buterin’s token sales coincide with a rough month for ETH prices.

Over the past 30 days, Ether has fallen more than 37%, now trading at $1,825.39, down roughly 5% in the last 24 hours.

Despite the drop, staking activity remains robust.

Over 30% of ETH supply is locked in staking, and validator demand is near record levels.

Staking yields have eased to about 2.8%, but minimal exit activity suggests sustained confidence among long-term holders.

Corporate Treasuries Face Losses

The market downturn has also affected corporate ETH holdings.

Bitmine Immersion Technologies, one of the largest institutional holders, reportedly carries billions in unrealized losses following a roughly 60% drop in ETH value over the past six months, far below the average acquisition price.

What’s Next?

Buterin’s ETH outflows are expected to continue gradually as he funds privacy initiatives over the coming years.

Analysts suggest that while his personal selling has limited market impact thanks to careful routing, broader ETH market volatility may persist.

Investors will likely watch both Buterin’s wallet activity and Ethereum staking trends closely in the months ahead.

Summary

Ethereum co-founder Vitalik Buterin has reduced his ETH holdings by around 17,000 tokens this month to fund $45 million in privacy-focused and open-source technology projects.

Using strategic swaps through CoW Protocol, Buterin aims to support secure software and hardware systems while minimizing market disruption.

Despite a 37% drop in Ether price over the past month, staking demand remains strong, and corporate treasuries like Bitmine face significant unrealized losses.

Buterin’s initiative underscores his continued influence on both Ethereum’s ecosystem and the broader crypto landscape.