S&P Global: Ethereum Spot ETFs May Increase Centralization Risk for ETH

SP Global analysts state that if approved, proposed Ethereum spot ETFs could increase the centralization risk within the Ethereum ecosystem. The analysts say, "US spot Ethereum ETFs with staking capabilities could become large enough to alter the concentration of validators on the Ethereum network, for better or worse. Therefore, understanding how the ETF issuers' choices will drive concentration risk is crucial." The analysts suggest that new cryptocurrency custodians could help ETF issuers achieve stake diversification, thus reducing this risk.