Ethereum co-founder Vitalik Buterin has identified two existential threats to the network triggered by the aggressive accumulation of Ether (ETH) by giants like BlackRock.
Nine Wall Street firms offering Ethereum ETFs now hold over $18 B in ETH, and analysts forecast institutions could soon control more than 10% of the entire supply.
Speaking at the Devconnect conference in Buenos Aires, Buterin argued that this influx of institutional capital risks dismantling Ethereum’s core values — decentralization and independence.
Two Threats To Decentralization
Buterin outlines two key dangers to the blockchain:
- Developer exodus: if the network becomes a tool for institutional finance, builders and the community who value censorship resistance will leave. This would strip Ethereum of the technical expertise required to maintain decentralization.
- Technical centralization: institutional pressure could force flawed technical choices. For instance, implementing ultra-fast 150-millisecond blocks would make running a node impossible for most users, limiting operation to financial hubs like New York and causing geographic centralization.
He urged the community to focus on preserving the foundation of Ethereum — a global and independent protocol.
