Ethereum co-founder Vitalik Buterin has warned that the network is facing two separate yet serious challenges. The rising institutional accumulation of Ether and the accelerating advances in quantum computing stands as severe threats. Speaking at the Funding the Commons event during Devconnect in Buenos Aires, Buterin outlined how concentrated asset ownership and sudden hardware progress could undermine core assumptions that currently protect the blockchain.
Ethereum co-founder Vitalik Buterin has warned that the network is facing two separate yet serious challenges. The rising institutional accumulation of Ether and the accelerating advances in quantum computing stands as severe threats. Speaking at the Funding the Commons event during Devconnect in Buenos Aires, Buterin outlined how concentrated asset ownership and sudden hardware progress could undermine core assumptions that currently protect the blockchain.
During a panel discussion with computer scientist Roger Dingledine, as by DL News, Buterin stated that the growing presence of major asset managers in Ether markets could change Ethereum’s development path. Nine large financial firms now manage more than $18 billion in ETH through ETFs, while treasury and digital-asset-holding companies maintain an additional $18 billion on their balance sheets. These organizations collectively control 10.4% of Ether’s total supply, according to figures cited at the event.
Buterin argued that such concentrations introduce two specific risks. The first is the possible departure of long-time developers who may be unwilling to work in an environment shaped by traditional finance priorities. Those developers, he said, have historically focused on building open and transparent systems. The second risk centers on protocol-level pressure.
Vitalik addressed that the existence of institutional pressures leads to wrong technical decisions that impacts Ethereum’s accessibility. As an example, Buterin referenced the idea of cutting block-creation times to 150 milliseconds, a shift that would limit the ability of ordinary users outside financial hubs to operate nodes.
According to this backdrop, Bloomberg analysts noted that BlackRock has submitted filings in Delaware for a new Ethereum ETF with staking features, a procedural step preceding a full launch. The planned product is expected to be displayed alongside the firm’s existing ETHA vehicle, which has collected $13.1 billion since 2024.
Buterin also reiterated separate concerns about quantum-computing advances. He that current cryptographic protections may be disrupted as early as 2028, citing recent hardware developments from Google and Microsoft. Quantum researcher Scott Aaronson has similarly stated that the pace of progress makes a fault-tolerant machine capable of running Shor’s algorithm a “live possibility” before the next U.S. presidential election.
Other industry figures, including , Alex Pruden, and Théau Peronnin, have echoed those warnings, with Peronnin saying Bitcoin may require a protocol change by 2030 to remain secure.
In response to this, Buterin told developers that Ethereum may respond by allowing different layers of the protocol to “ossify” at different speeds. He suggested that adaptability across consensus, execution, and user-facing tools may be necessary as the network prepares for both institutional influence and emerging quantum risks.
