As more large financial firms enter the Ethereum ecosystem, Vitalik Buterin has warned that the network could drift from its founding values. He pointed to two major risks that could emerge if institutions such as BlackRock continue to hold large amounts of ETH.
Institutional Influence Threatens Ethereum’s Community Foundations
Buterin's remarks arrive at a time when institutional interest in digital assets is growing fast. Fidelity reported that more than half of surveyed institutional investors now own crypto, a sign that the space is no longer a niche corner of finance. This trend brings new energy and capital, but also raises important questions about control and direction.
Buterin's first concern centers on the culture that has defined Ethereum since the early days. The network was built by an open group of developers who believed in public access and shared decision-making. He warned that this core community could be pushed aside if institutions hold too much influence. When large players control big positions, they can shape the conversation and pressure the ecosystem toward their own priorities.
@VitalikButerin warned at the Devconnect conference that if institutions like BlackRock continue to hold large amounts of $ETH , Ethereum will face two core risks:
First, the decentralized core community and developers may be alienated by these institutions.
secondly,… pic.twitter.com/FPaEdeJKNd
— Vicki.hl (@vickydiamond21) November 20, 2025
This matters because Ethereum’s strength has always come from a broad, diverse group of people who help secure the network, write code, and test new ideas. A shift toward a small group of powerful decision makers could weaken that trust. A recent example comes from traditional finance. When several major firms began backing a new global payment standard, many smaller participants said their needs were overlooked. Buterin suggested that a similar scenario could occur with Ethereum if the community becomes fragmented.
Risk Two: Technical Choices Could Cater to Big Firms
Buterin's second warning focused on the technical future of the chain. He said institutions might push for changes that fit their business needs but harm the network’s long-term health. One idea he highlighted was the push for a 150-millisecond block time. Block time refers to the speed at which new blocks are added to the blockchain. Cutting it this low would require extremely powerful hardware.
The highlight for me at @EFDevcon was @VitalikButerin Ethereum in 30 minutes
I like how Vitalik approached the talk without making any assumptions that we know what blockchain is ✌️
Here are some bullet points
– The point of blockchains is that you don’t have to trust them… pic.twitter.com/vJcGjOhQyt
— Charles Freeborn at Devconnect 🇦🇷 (@charliecodes) November 17, 2025
That would make it hard for normal users to run their own nodes. A node is a computer that checks transactions and helps secure the network. If only large firms can afford to run nodes, Ethereum loses its openness and becomes easier to censor. This would undermine one of the key reasons people trust the chain.