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Ethereum News Update: Growing Institutional Interest in ETH Amid Rising Worries Over Decentralization

Ethereum News Update: Growing Institutional Interest in ETH Amid Rising Worries Over Decentralization

Bitget-RWA2025/11/21 00:46
By:Bitget-RWA

- Ethereum’s institutional adoption accelerates as Tether , BlackRock , and SGX expand crypto infrastructure and ETF strategies. - Vitalik Buterin warns of decentralization risks from concentrated ETH ownership and potential quantum computing threats by 2028. - SGX launches Bitcoin/Ethereum futures to boost institutional liquidity, while ETF outflows and bearish indicators signal market weakness.

Institutional interest in

(ETH) is gaining momentum, as fresh investments and infrastructure projects reflect increasing trust in the cryptocurrency’s future prospects. Recent actions by key institutions such as , , and the Singapore Exchange (SGX) illustrate a growing convergence between traditional finance and digital assets. At the same time, Ethereum co-founder Vitalik Buterin has cautioned about the dangers of expanding institutional power and the rapid progress in quantum computing.

Tether, the issuer of the leading stablecoin

, has put capital into Parfin, a crypto infrastructure provider in Latin America, to boost institutional adoption of USDT in the area . This collaboration intends to utilize USDT as a settlement medium for cross-border payments, asset tokenization, and trade financing. Parfin, which operates in Brazil and Argentina, has already achieved regulatory approval in Argentina and is broadening its on-chain settlement offerings . This move fits within the larger trend of crypto uptake in Latin America, where nearly $1.5 trillion in crypto transactions between July 2022 and June 2025.

Ethereum News Update: Growing Institutional Interest in ETH Amid Rising Worries Over Decentralization image 0
Meanwhile, BlackRock is pushing forward with its Ethereum ETF plans, having in Delaware. This product, which merges price exposure with staking rewards, may appeal to investors seeking yield. BlackRock’s initiative follows similar moves by REX-Osprey and Grayscale, indicating a shift toward crypto products that offer total returns. The company also remains active in ETFs, with in assets. However, stands in contrast to the more aggressive strategies of other issuers.

The growing institutional presence in Ethereum has prompted warnings from Buterin, who

during the Devconnect event in Buenos Aires. First, — which collectively hold $18 billion in ETFs and treasuries — could drive away developers who value decentralization. Second, such as reducing block times to 150 milliseconds, potentially centralizing node operations in financial centers like New York. Buterin stressed the importance of maintaining Ethereum’s open and global character as institutional involvement increases .

Another major challenge is the threat posed by quantum computing, with

that current cryptographic safeguards might be vulnerable as soon as 2028. To address this, Ethereum could implement layered ossification, allowing different protocol layers to evolve at their own pace . This comes as , highlighting the urgency for post-quantum cryptography upgrades.

SGX’s introduction of perpetual Bitcoin and Ethereum futures on November 24 further demonstrates institutional appetite

. The Singapore exchange’s new offerings, which use the iEdge CoinDesk Crypto Indices as benchmarks, are designed to improve liquidity and provide regulatory certainty for institutional participants . Industry players such as Bitstamp and DBS Bank have for reinforcing Singapore’s status as a leading crypto center.

Despite these advancements, Ethereum’s price trend remains negative, with

toward the end of November. On November 14, Ethereum ETFs saw $260 million in outflows, and there have been no inflows since November 6 . The wider market, including Bitcoin and , is also experiencing weak demand, with technical signals like the Death Cross and falling RSI pointing to continued bearish sentiment .

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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