Ethereum’s Pectra upgrade, as described by Mallesh Pai, Consensys’ senior research director, does not pose a risk to decentralization. The upgrade streamlines the tasks handled by validators, with rewards still based on the amount of ETH staked, ensuring large validators do not gain additional advantages. Pectra, the most significant network upgrade since the Merge in September 2022, raises the staking limit to 2,048 ETH from 32 ETH, sparking concerns about centralization. Pai highlighted that the upgrade eliminates unnecessary network tasks, allowing for the consolidation of virtual keys, potentially reducing the number of validators to around 30,000. This consolidation aims to enhance network efficiency and focus on critical aspects like gas limits. The increased staking limit could open doors for institutional investors to stake ETH, making it easier to integrate institutional staking with reduced risks. The potential approval of Ether staking in exchange-traded funds (ETFs) has attracted attention from financial institutions like BlackRock, with amendments filed to enable staking in Ether ETFs. Despite the SEC’s pending decision on staking amendments, the approval could lead to increased investor interest due to potential yields. Bloomberg ETF analyst Eric Balchunas noted that Ether ETFs’ approval for staking may have a limited impact on inflows, citing Ethereum’s performance as a key factor. The anticipation of regulatory approval for staking amendments in Ether ETFs remains a point of interest for investors and market analysts.