Renowned crypto expert and popular YouTuber ‘Altcoin Daily’ has put forward an intriguing proposition, suggesting that the soon-to-be-launched Shiba Inu futures contract on Coinbase Derivatives, which is regulated by the U.S. Commodity Futures Trading Commission (CFTC), could potentially pave the way for a spot exchange-traded fund (ETF).
Altcoin Daily shared this speculation in a recent post, underscoring the significance of the forthcoming futures contracts.
Coinbase Derivatives has sought permission from the CFTC to introduce regulated futures contracts for Shiba Inu, as well as four other cryptocurrencies, namely Stellar (XLM), Chainlink (LINK), Polkadot (DOT), and Avalanche (AVAX).
The exchange has disclosed its plans to list these products under a self-certification model, with a scheduled launch date of July 15, 2024.
Altcoin Daily reacted to this news by highlighting the benefits that regulated futures contracts offer to U.S. investors. According to the expert, these contracts provide investors with improved transparency, regulatory oversight, a compliant trading environment, and risk management.
What’s particularly interesting is that Altcoin Daily noted that such products often serve as a precursor to the potential introduction of spot ETFs for the assets involved.
In a subsequent YouTube video, Altcoin Daily asserted that the Securities and Exchange Commission (SEC) approved spot ETFs for Bitcoin (BTC) and Ethereum (ETH) because they initially had regulated futures contracts.
“The Bitcoin [and] Ethereum ETFs only got approved because they had futures contracts first,” remarked Altcoin Daily.
Eric Balchunas, an ETF analyst at Bloomberg, echoed a similar sentiment last month when reacting to VanEck’s filing for a Solana spot ETF. Balchunas stated that his initial reaction to the filing was that the SEC would not approve a Solana ETF due to the absence of a futures contract for the asset.
Within the Shiba Inu community, there is growing optimism that a regulated SHIB futures contract on Coinbase Derivatives could eventually lead to the introduction of a spot SHIB ETF.
Ever since the SEC approved multiple Bitcoin spot ETFs in January, members of the community have been hoping for a similar offering for SHIB. This led enthusiasts to petition Grayscale Investments to apply for the launch of a spot SHIB ETF. Although Grayscale has yet to respond to this request, the imminent launch of a regulated SHIB futures contract could further solidify investors’ confidence in the potential for a spot ETF for the token.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. The views expressed in this article are solely those of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.