Not very clear why Linux foundation would give more funds to blockchain projects than to the Linux kernel itself.

Crypto projects have ways to fund themselves just fine. And as they are commonly negatively seen in the open-source community, this kind of funding from one of the largest bodies in the open-source world raises some eyebrows.

Ubuntu has large corporate interest and is managed by a private company earning dozens of millions of dollars annually. There is a financial interest to be made here.