CoinDesk Report:
If Shiba Inu captures only 50% of the capital inflows recorded by Bitcoin ETF products, it could potentially inject funds leading to a new ATH of $0.0011477, representing a staggering 9472% increase.
After years of denial and delay, the U.S. Securities and Exchange Commission approved trading for Bitcoin spot ETFs in January. These products have since achieved tremendous success, attracting billions of dollars in inflows. According to Farside Investors, total net flows into Bitcoin spot ETF products have amounted to $14.76 billion since January 10.
Initially surpassing the $15 billion mark, this figure has slightly decreased due to ongoing market declines. Nevertheless, the $14.76 billion net inflow over seven months underscores this remarkable achievement.
With the success of Bitcoin spot ETFs, discussions have turned to the possibility of ETFs tracking other cryptocurrencies. Notably, some asset management firms have applied for Ethereum ETFs, with their 19b-4 applications recently gaining SEC approval. Regulatory approval for these firms’ S-1 applications is still pending before these products can commence trading.
Call for a Shiba Inu Spot ETF
Last month, asset management firm VanEck applied to launch the first Solana ETF in the U.S. market. Concurrently, amid the ETF frenzy, members of the Shiba Inu community have advocated for a Shiba Inu ETF. The community has petitioned asset management firm Grayscale Investments to introduce such a product.
While the petition has garnered attention, Grayscale has yet to respond. The demand for a Shiba Inu spot ETF is driven by its potential impact on Shiba Inu’s price. Notably, if demand is strong, an ETF could attract sufficient capital into the Shiba Inu market.
Though the potential impact on prices could be significant, the actual extent remains uncertain. Crypto Basic recently assessed this scenario with Shiba Inu ETF inflows at half of Bitcoin ETF inflows. Notably, 50% of $14.76 billion amounts to $7.38 billion.
Potential SHIB Price
However, if a Shiba Inu ETF records $7.38 billion in inflows, the impact on market cap would be substantial. Bank of America estimates Bitcoin’s impact ratio at 1:118. This suggests that for every $1 billion flowing into Bitcoin spot ETFs, Bitcoin’s market cap increases by $118 billion.
Applying this estimate to Shiba Inu, a $7.38 billion inflow would potentially increase its market cap by $871.4 billion. With Shiba Inu’s current market cap at $9 billion, this increase could push it to $87.04 billion.
This $87.04 billion valuation translates to a SHIB price of $0.0011477, representing a 9472% rise from its current $0.00001543. However, it’s important to note this is a hypothetical assessment, not investment advice. Shiba Inu currently lacks an existing ETF, and realizing such inflows would require significant demand.