Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
Home»ADOPTION NEWS»Spot Ether ETFs May Increase Ethereum’s Concentration Risk, S&P Global Says.
ADOPTION NEWS

Spot Ether ETFs May Increase Ethereum’s Concentration Risk, S&P Global Says.

By Crypto FlexsFebruary 21, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Spot Ether ETFs May Increase Ethereum’s Concentration Risk, S&P Global Says.
Share
Facebook Twitter LinkedIn Pinterest Email

Proposed Approval Ethereum ETH

-1.15%
According to an analysis by S&P Global Ratings, U.S. exchange-traded funds (ETFs) seeking to introduce staking may increase the risk of concentration on Ethereum.

“A U.S. spot ether ETF that integrates staking could become large enough to change the concentration of validators on the Ethereum network, for better or for worse,” S&P analysts Andrew O’Neill and Alexandre Birry wrote in a report published Tuesday. “There is,” he said. “It is therefore important to understand how the choice of ETF issuer creates concentration risk.”

Analysts predict that the U.S. Securities and Exchange Commission will approve a spot Ether ETF as early as May of this year. This is the first deadline to approve such funds. Several companies, including giants like BlackRock and Fidelity, have applied for spot ether ETFs. Some of the applicants, most notably Ark Invest and Franklin Templeton, are also aiming to generate additional revenue by staking native Ethereum.

A spot ether ETF is unlikely to choose a protocol like Lido for staking.

Lido, a decentralized liquid staking protocol, is currently the largest Ethereum validator, followed by Coinbase. A spot ether staking ETF is unlikely to opt for a decentralized protocol like Lido, according to S&P analysts. Instead, they are likely to choose an institutional cryptocurrency custodian. Analysts noted that the impact on concentration will depend on whether the issuer diversifies its holdings across multiple custodians.

“Coinbase serves as custodian for eight of the 11 recently approved U.S. Bitcoin ETFs and has been designated as a staking institution by three of the four largest non-U.S. Ether staking ETFs,” the analysts said. “The emergence of new digital asset custodians will enable ETF issuers to spread their holdings across multiple companies and mitigate these risks,” they added.

JPMorgan analysts recently warned of concentration risks in Ethereum, of which Lido is the largest validator.

“Centralization by any entity or protocol poses risks to the Ethereum network as a concentrated number of liquidity providers or node operators could act as a single point of failure, become a target for attack, or collude to create an oligopoly that promotes their own interests. It goes without saying that they pursue their own interests at the expense of the interests of the community, for example by censoring certain transactions or preemptively executing end-user transactions,” JPMorgan analysts said at the time.


Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.

© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

KAITO unveils Capital Launchpad, a Web3 crowdfunding platform that will be released later this week.

July 22, 2025

Algorand (Algo) Get momentum in the launch and technical growth.

July 14, 2025

It flashes again in July

July 6, 2025
Add A Comment

Comments are closed.

Recent Posts

MultiBank Group’s $MBG Token TGE Is Live On MexC, Gate.io, Uniswap And Multibank.io.

July 22, 2025

Ark Invest sells coinbase stocks and invests in BitMine.

July 22, 2025

Altcoin benefits of capital rotation

July 22, 2025

KAITO unveils Capital Launchpad, a Web3 crowdfunding platform that will be released later this week.

July 22, 2025

CARV Advances AI Beings Roadmap With Hackathon And 12+ Ecosystem Partnerships

July 22, 2025

POLYMARKET will re -enter the United States after the acquisition of QCEX $ 112 million.

July 22, 2025

FTT increases by 7% as the backpack starts the platform to help victims clear liquidation.

July 21, 2025

Monarq Asset Management Appoints Sam Gaer As CIO To Lead Directional Strategy

July 21, 2025

Little PEPE surpasses $ 4 million in pre -sales, emerging as one of the main memes in 2025.

July 21, 2025

Bitcoin Price $ 123K Explosion -Trader Brace for Brake Out

July 20, 2025

Ether Lee Rium breaks $ 3K with 7,200% of the virus L2 coin eyes.

July 20, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

MultiBank Group’s $MBG Token TGE Is Live On MexC, Gate.io, Uniswap And Multibank.io.

July 22, 2025

Ark Invest sells coinbase stocks and invests in BitMine.

July 22, 2025

Altcoin benefits of capital rotation

July 22, 2025
Most Popular

Singapore Police Arrest 3 for Assaulting Teen at Crypto Exchange

September 6, 2024

Can Telegram Coin Survive?

August 15, 2024

The top seven free cloud mining sites that can be found in 2025 -Trump’s encryption policy is hit before the hit

April 23, 2025
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.