In January 2024, the U.S. Securities and Exchange Commission (SEC) greenlit spot Bitcoin ETFs, marking a significant milestone for the cryptocurrency industry. These products have garnered significant interest, attracting billions of dollars in investments.
Data from Farside Investors indicates that spot Bitcoin ETFs have amassed $14.76 billion in net inflows since their launch. This influx of capital highlights the growing institutional adoption of Bitcoin. The easy access and regulated environment provided by ETFs have undoubtedly contributed to this trend.
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Since the Bitcoin ETF approval in January, many other cryptocurrency communities have been advocating for ETFs. The possibility of similar exchange-traded funds for other cryptocurrencies, particularly those with large and active communities, is a natural progression. Notably, the Shiba Inu community has actively called for a spot Shiba Inu ETF, anticipating a positive impact on the token’s price.
Calls for a Spot Shiba Inu ETF
Shiba Inu, with its passionate community, has emerged as a strong contender for a potential spot ETF. Proponents argue that such a product could attract substantial capital, directly impacting the token’s price.
The community has also taken steps toward this goal, recently starting a petition asking Grayscale, a prominent asset manager, to launch a dedicated ETF. While Grayscale has yet to comment on the petition, the potential benefits of a Shiba Inu ETF are undeniable.
SHIB’s Potential Trajectory
To analyze the theoretical influence of a Shiba Inu ETF on token price, let’s consider a scenario where such an ETF captures 50% of the inflows witnessed by spot Bitcoin ETFs. This translates to $7.38 billion, a significant sum capable of influencing market dynamics.
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For traditional assets, analysts often employ a market capitalization ratio to estimate price movements. Bank of America, for instance, estimates a 1:118 ratio for Bitcoin, suggesting a $118 billion increase in market cap for every $1 billion flowing into spot Bitcoin ETFs.
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While the exact applicability of this ratio to Shiba Inu remains uncertain, it can provide a framework for analysis. Applying a similar ratio to a hypothetical $7.38 billion inflow for a Shiba Inu ETF would result in an $861.4 billion increase in market capitalization.
Shiba Inu’s current market cap sits at around $9 billion. With an additional $861.4 billion, the total market cap would reach a staggering $870.4 billion. This translates to a potential price of $0.001477 per SHIB token, a remarkable increase of 8,537.43% from its current price of $0.0000171. Meanwhile, Times Tabloid recently reported potential timelines for Shiba Inu to reach the $0.001 target.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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