Ether ETF Applications Spur S&P Warning on Ethereum Concentration Risks

The prospect of a US approval of Ether exchange-traded funds threatens to exacerbate the Ethereum ecosystem’s concentration problem by keeping staked tokens in the hands of a few providers, S&P Global warns.

After the first spot Bitcoin ETFs were approved in January, investors are expecting Ethereum’s native token to be next. Some of the spot Ether ETFs applications — namely ones from Ark Investment Management and Franklin Templeton — are proposing to allow staking, that is when Ether holders lock their tokens to the Ethereum network to help validate transactions and to earn additional yields.

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