Shiba Inu can record substantial price growth if it secures a spot Shiba Inu ETF capable of attracting at least 10% of inflows witnessed by the spot BTC ETF products.
The Bitcoin market has benefited massively from the public trading of the spot BTC ETF products approved by the U.S. SEC two months back. These investment vehicles have attracted inflows from traditional institutions, resulting in BTC reaching new heights before its halving.
Amid the success of the spot Bitcoin ETFs, several crypto communities have clamored to see their native tokens secure a similar investment product. Ethereum (ETH) is on the verge of attaining this feat, with BlackRock, Fidelity and others already awaiting approval of their filings.
Meanwhile, the XRP and Shiba Inu communities have called for their tokens to receive similar attention. Last month, the Shiba Inu community launched a petition to implore Grayscale to file for a spot Shiba Inu ETF. As of March 12, the petition boasted over 5,000 signatures.
While Shiba Inu is still a long way from securing a spot in ETF, the implications of such a development cannot be overstated. The impact of the spot Bitcoin ETFs on the Bitcoin market demonstrates the bullish momentum a SHIB ETF could bring if it commands similar institutional interest.
Shiba Inu Price if It Gets 10% of Spot BTC ETF Inflows
Data from BitMEX Research confirms that the spot Bitcoin ETFs have witnessed $12.125 billion in net inflows since they began trading on Jan. 11. If Shiba Inu, due to its less prominence, commands only 10% of this capital flow, the asset could witness a massive price growth.
Notably, 10% of $12.125 billion amounts to $1.212 billion. This entails that the Shiba Inu market would record an impressive $1.212 billion capital flow. Adding the Bank of America (BoA) 1:10 multiplier effect, these inflows would result in Shiba Inu’s market cap soaring by an additional $10 billion.
– Advertisement –
Shiba Inu’s market valuation currently sits at $17.9 billion, making it the 11th largest asset. An addition of $10.2 billion to this valuation would result in a $28.1 billion market cap. If SHIB’s circulating supply of 589 trillion remains fairly stable, a market cap of $27.9 billion would translate to a price of $0.00004768.
This figure represents a mere 56.2% increase from Shiba Inu’s current price of $0.000028. While the projected value remains below Shiba Inu’s all-time high price, it only accounts for the minimal capital inflows and figures from the first three months of trading.
Should the potential spot SHIB ETFs witness similar sustained inflows for a year, Shiba Inu could record an additional $36 billion, bringing its market cap to $64.1 billion. At such a valuation, Shiba Inu’s price would skyrocket to the $0.0001 territory.
The Crypto Basic reported in February that the Shiba Inu community created a petition asking Grayscale Investments to launch the Shiba Inu ETF.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
