The potential approval of ether staking ETFs in the U.S. could impact Ethereum’s validator mix, potentially increasing the network’s concentration risk. Analysts from S&P Global warn that while institutional custodians may reduce current concentration on decentralized staking protocols, they could introduce new concentration risks if a single entity is chosen to stake the bulk of ether in these ETFs. The entry of spot ether staking ETFs into the market could have a significant effect on concentration risk, making constant monitoring crucial.
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