In 2024, the US Securities and Exchange Commission (SEC) approved Bitcoin (BTC) and Ethereum (ETH) spot exchange-traded funds (ETFs). This has created excitement for future crypto ETFs, including Shiba Inu (SHIB). 🎉📈
A SHIB ETF can facilitate investment and increase demand, but it is also focused on centralized control and additional fees. LUCIE, Marketing Strategist at Shibarium, explained why a SHIB ETF would be a “great” option. The first plus mentioned was "accessibility".
On the other hand, LUCIE cited several reasons why a SHIB ETF “might not be great for DeFi.” ETF investors may miss out on activities such as staking and management because they do not directly own cryptocurrencies. Additionally, exchange-traded products involve management fees and regulatory oversight and can potentially lead to “market manipulation.”
"ETFs can centralize control of SHIB, potentially leading to market manipulation, going against the transparency of DeFi but offering stability to volatile markets. In essence, the impact of a SHIB ETF on DeFi varies depending on perspective, balancing advantages with potential disadvantages. So, "It's a situation where we have to decide what's better for ourselves." concluded LUCIE.