Growing Support for a Shiba Inu ETF
The growth of the Shiba Inu ecosystem has raised questions about the possibility of a SHIB ETF. Some of the key influencers in the community like the content marketer Lucie has expressed her views that a SHIB ETF could be launched soon. In June, the Shiba Inu community moved forward by calling on Grayscale, the largest digital asset manager, to apply for a SHIB ETF. Even though Grayscale has not provided an official filing regarding the matter, the idea has gained considerable attention.
Should it be approved, a Shiba Inu ETF could bring much-needed resources into the SHIB market. As seen with Bitcoin, the introduction of an ETF can have a significant positive impact on the demand for the respective asset. This increase in demand normally results in increased liquidity, making the asset easier to trade. For SHIB, this increased liquidity could mean that the value of the coin increases, which is good news for investors.
However, it is still unclear how much this influx will affect the cryptocurrency, but it could be a turning point for the cryptocurrency as it has gradually been growing in recent years. Analysts have explored how Shiba Inu’s price might respond if a SHIB ETF garners 50% of Bitcoin ETF capital inflows. Currently, Bitcoin ETFs have seen $21.4 billion in inflows, and if Shiba Inu were to garner half of that, or $10.7 billion, the market could witness a huge rally. With a Bank of America (BoA) multiplier of 29.5x, this capital inflow could increase Shiba Inu’s market cap by an additional $315.65 billion