How Shiba Inu's Prospective ETF Could Affect Its Price

3 min read | September 05, 2024 08:55 AM BST | By Team Kalkine Media

 The cryptocurrency sector is abuzz with discussions about the possibility of a spot-based Shiba Inu ETF. Some enthusiasts believe that such an ETF could potentially influence SHIB's price significantly, possibly driving it to the $0.0010 or $0.0019 mark. This conversation gained traction following the recent launch of Bitcoin and Ethereum spot ETFs, with the Shiba Inu community now advocating for a similar product for SHIB. 

Community Advocates for a Shiba Inu ETF 

Proponents of Shiba Inu (SHIB) have voiced strong support for the creation of a spot ETF tied to the asset. They argue that Shiba Inu has the necessary attributes to qualify for such a financial product. Notably, the U.S. Securities and Exchange Commission (SEC) has not labeled SHIB as a security, which could be seen as a favorable factor in the ETF approval process. 

This push for a Shiba Inu ETF has led community members to petition prominent crypto asset managers, including Grayscale Investments, to introduce a SHIB-specific ETF. As this demand gains momentum, questions arise regarding the potential impact of such an ETF on SHIB’s price. 

Impact of a Shiba Inu ETF on SHIB's Price 

The effect of a spot Shiba Inu ETF on the token’s price largely hinges on the adoption rate of the product. Bitcoin, for example, saw notable price increases following the approval of multiple Bitcoin spot ETFs by the SEC on January 10. Since then, the net inflows into these Bitcoin ETFs have totaled approximately $17.6 billion as of August 30, based on data from Farside. 

Hypothetical Price Scenario: 50% of Bitcoin (BTC) ETF Inflows 

If Shiba Inu were to secure a spot ETF and achieve 50% of the net inflows seen by Bitcoin ETFs, it could attract an inflow of $8.8 billion. Using an estimate from Bank of America, which suggests that Bitcoin’s market cap could increase by $118 billion for every $1 billion of ETF inflow, this scenario could imply a significant impact on SHIB’s market cap. 

Applying this estimation to Shiba Inu, a hypothetical $8.8 billion inflow could potentially boost its market cap to approximately $1.04 trillion. When added to Shiba Inu’s current market cap of $8.21 billion, the total valuation could reach around $1.12 trillion. With a relatively stable circulating supply of 589.27 trillion, Shiba Inu’s price could reach $0.0019, marking a substantial increase from its current price of $0.00001397. 

Hypothetical Price Scenario: 30% of Bitcoin ETF Inflows 

Alternatively, if Shiba Inu’s ETF were to capture 30% of Bitcoin’s net ETF inflows, it could see an inflow of about $5.28 billion. Utilizing Bank of America’s estimate, this inflow could elevate Shiba Inu’s market cap to roughly $623.04 billion. Combining this figure with the current market cap would bring the total valuation to $631.25 billion. With the circulating supply remaining stable, this market cap would translate to a price of approximately $0.001071 per token, representing a significant increase from the current price levels. 

While these scenarios are hypothetical and depend heavily on the market’s response to a potential Shiba Inu ETF, they highlight the considerable interest within the cryptocurrency community regarding the impact of such financial products. The Shiba Inu community’s ongoing efforts to advocate for an ETF underscore the growing demand for diverse investment vehicles in the digital asset space. 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.


Sponsored Articles


Investing Ideas

Previous Next