The cryptocurrency market increasingly attracts traditional finance (TradFi) investors, as evidenced by the rapid adoption of spot Bitcoin ETFs. Amid this trend, discussions emerge about the possibility of ETFs tracking other cryptocurrencies, including Ethereum and Shiba Inu.
BlackRock and Fidelity Investments are eyeing Ethereum, but approval for these products is less likely due to the SEC’s ongoing battle over ETH’s security status with Consensys.
Shiba Inu’s Regulatory Advantage
Shiba Inu’s decentralized nature has kept it from being labeled a security by the SEC. This distinction enhances its chances of securing approval for a spot ETF, unlike Ethereum, which faces regulatory hurdles.
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The Shiba Inu community actively advocates for the launch of a SHIB ETF, even petitioning BlackRock to consider such a product.
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The extent of such impact would depend on the adoption it commands. Notably, Bitcoin has seen massive price upswings this year due to the extensive inflows into its spot ETF products, currently totaling $11.946 billion since Jan. 10.
Projection of Inflows and Market Cap
If Shiba Inu sees a SHIB ETF launch and captures 30% of the yearly inflows into Bitcoin ETFs, it could attract $10.734 billion. This would add $100 billion to Shiba Inu’s valuation using the BoA multiplier of 1:10.
With a $113 billion market cap, Shiba Inu’s token price could reach $0.0001917, a 750% increase from its current $0.00002256. Approval of a SHIB ETF could significantly raise Shiba Inu’s price and market cap, potentially enhancing its standing in the crypto market.
