Potential Impact on Shiba Inu Price If SHIB ETF Gains Approval

Cryptonews Dante Raeburn October 24, 2024

Potential Impact on Shiba Inu Price If SHIB ETF Gains Approval

Shiba Inu’s price may soar if a SHIB ETF gains approval and captures 50% of Bitcoin ETF inflows, estimated at $10.7 billion. This capital influx could elevate SHIB’s market cap significantly, suggesting the possibility of a 3,000% price increase to around $0.0005537, based on current circulating supply. The feasibility of such an ETF is dependent on regulatory endorsements and market dynamics.

The Shiba Inu cryptocurrency (SHIB) could experience significant price growth if a proposed SHIB Exchange-Traded Fund (ETF) is approved and captures 50% of the inflows currently directed into Bitcoin ETFs. Following the introduction of spot Bitcoin ETFs, institutional investors have shown increased interest in the cryptocurrency market, leading to considerable capital infusions. The launch of these products coincided with Bitcoin reaching a new all-time high of over $73,000 in March 2024, primarily driven by robust inflows totaling approximately $21.4 billion since January. The success attained by Bitcoin ETFs has generated discussions within the crypto community regarding the potential for other cryptocurrencies to obtain similar products. Ethereum, being the second-largest cryptocurrency, was the next logical candidate, and though it received regulatory approval for ETFs in July, it has not matched the success of Bitcoin in this regard. The conversations surrounding future ETFs include assets like Solana (SOL) and XRP, which are pending approval. However, some experts and community members are advocating for a Shiba Inu ETF. The Shiba Inu project has evolved beyond its meme origins, seeking to establish its place as a utility token. Notable figures, including marketing expert Lucie, suggest a SHIB ETF might soon materialize. Additionally, the Shiba Inu community has taken proactive measures by petitioning Grayscale, a leading digital asset manager, to pursue a Shiba Inu ETF application with the Securities and Exchange Commission (SEC). While the petition is gaining traction, the process remains contingent on receiving the requisite regulatory approval. The introduction of a Shiba Inu ETF would greatly benefit the SHIB market by introducing new capital investments, although the precise impact of such an influx remains uncertain. Evaluating potential outcomes, should Shiba Inu capture 50% of the cumulative net inflows of Bitcoin ETFs, translating to an estimated $10.7 billion, this could lead to massive market cap increases. Assuming a multiplier effect of 29.5, drawn from Bank of America assessments, this inflow could elevate Shiba Inu’s market capitalization by approximately $315.65 billion, raising its total valuation to around $326.15 billion. Consequently, this would necessitate an approximately 3,000% price rally from its current valuation to reach an estimated price of $0.0005537 per SHIB, based on an existing supply of 589 trillion tokens.

The cryptocurrency market has seen a surge in institutional investment, particularly following the launch of spot Bitcoin Exchange-Traded Funds (ETFs), which have successfully attracted billions in capital. This wave of investment has not only benefitted Bitcoin but has also sparked speculation regarding the potential approval of ETFs for other cryptocurrencies. Among these, Shiba Inu is emerging as a candidate due to its expanding utility and community interest. Understanding the dynamics of ETF influences on cryptocurrency valuations and market behavior is crucial in exploring the prospective growth of Shiba Inu.

In summary, should a Shiba Inu ETF secure approval and successfully capture a significant share of the Bitcoin ETF inflows, the implications for SHIB’s price could be monumental. A targeted net inflow of $10.7 billion could translate to a staggering increase in market capitalization, requiring a substantial rise in SHIB’s price. However, such developments hinge on regulatory approval and market conditions, underscoring the uncertainty surrounding cryptocurrency investments.

Original Source: thecryptobasic.com