The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) in January 2024 has invigorated the cryptocurrency market. These exchange-traded funds (ETFs) have attracted significant inflows from traditional institutions, propelling Bitcoin to unprecedented heights.
The success of these Bitcoin ETFs has fueled speculation about similar products for other cryptocurrencies, with Shiba Inu (SHIB) being a prime candidate within its enthusiastic community.
While there are no current applications for a spot SHIB ETF has not, we can explore the potential impact of such a development. The inflows witnessed by spot Bitcoin ETFs provide a benchmark to assess how a theoretical SHIB ETF could influence Shiba Inu’s price.
The Shiba Inu community has actively advocated for a SHIB ETF. In February 2024, a petition garnered over 5,000 signatures urging Grayscale Investments, a prominent digital currency asset manager, to consider filing for a spot SHIB ETF. This grassroots effort highlights the community’s belief that a SHIB ETF could significantly bolster the token’s value.
BitMEX Research recently shared data showing that spot Bitcoin ETFs have attracted a net inflow of $12.125 billion since their launch in January. Assuming a hypothetical SHIB ETF captures 20% of this inflow based on the meme coin’s popularity, Shiba Inu could experience a substantial price increase.
This translates to $2.425 billion in potential capital directed towards the Shiba Inu market. We can apply the Bank of America 1:10 multiplier effect to calculate the impact of this inflow on SHIB’s market cap. This multiplier effect suggests that ETF inflows could lead to a $24.25 billion surge in Shiba Inu’s market cap.
Shiba Inu’s current market capitalization sits at approximately $15.6 billion. With the additional $24.25 billion, the market cap would reach $39.85 billion. Considering Shiba Inu’s current circulating supply of approximately 582 trillion tokens, this market cap translates to a potential price of 0.00006838. SHIB is trading at $0.00002654, and achieving the target above translates to a 157.6% increase for the meme coin.
The Shiba Inu community is eager for a SHIB ETF, and this ETF could hold some advantages over others. Should a spot SHIB ETF experience sustained inflows comparable to those observed with Bitcoin ETFs, the impact on Shiba Inu’s price could be even more dramatic.
Follow us on Twitter, Facebook, Telegram, and Google News
Price predictions are increasingly becoming an intrinsic feature in the crypto landscape, and a famous…
In 2014, Ethereum’s Initial Coin Offering (ICO) took the world of cryptocurrency by storm, raising…
Shiba Inu is experiencing a surge in market activity, capturing attention with approximately 17 trillion…
Crypto chartist CryptoAmsterdam recently advised Shiba Inu (SHIB) investors to view every price dip as…
David Schwartz, Ripple’s Chief Technology Officer, recently highlighted significant distinctions between contracts and “reasonable reliance,”…
Bitcoin's recent all-time highs have brought the cryptocurrency market to a crucial turning point that…