An approval of proposed Ethereum exchange-traded funds in the U.S., which intend to incorporate staking, could increase Ethereum's concentration risk, according to analysis from S&P Global Ratings.

"U.S. spot ether ETFs that incorporate staking could become large enough to change validator concentrations in the Ethereum network, for better or worse," S&P analysts Andrew O'Neill and Alexandre Birry said in a report published Tuesday. "It is therefore critical to understand how ETF issuers' choices will drive concentration risks."

The analysts predict that the U.S. Securities and Exchange Commission will approve spot ether ETFs as early as May of this year — its first deadline to approve such funds. Several firms, including giants like BlackRock and Fidelity, have filed for spot …