Shiba Inu has the potential to surge by 9,472%, reaching a new all-time high (ATH) of $0.001477, provided it captures just 50% of the capital inflows seen by spot Bitcoin ETF products.
After years of refusals and delays, the U.S. SEC finally approved spot Bitcoin ETF trading in January. These ETFs have proven highly successful, attracting billions in inflows. As of January 10, these products accumulated total netflows of $14.76 billion, according to data from Farside Investors.
Initially exceeding $15 billion, recent market downturns have slightly reduced these net inflows. Nevertheless, the $14.76 billion influx over seven months is a notable achievement.
The success of spot Bitcoin ETFs has sparked discussions about ETFs tracking other cryptocurrencies. Some asset managers have filed for Ethereum ETFs, with their 19b-4 filings recently approved by the SEC. However, approval of S-1 filings is still pending before these products can trade.
Advocates for a Shiba Inu ETF have emerged within the community amid this ETF trend. Asset management firm VanEck recently filed to launch a Solana ETF, while Shiba Inu supporters have petitioned Grayscale Investments to introduce a Shiba Inu ETF.
Despite gathering attention, Grayscale has not responded to the petition. The rationale behind the call for a spot Shiba Inu ETF lies in its potential to impact the coin’s price significantly. High demand could channel substantial capital into the Shiba Inu market, although the precise effect remains uncertain.
Crypto Basic recently explored this potential, calculating that if Shiba Inu ETFs were to attract half of the inflows seen by Bitcoin ETFs, it would amount to $7.38 billion. Bank of America estimates that each $1 billion flowing into spot Bitcoin ETFs increases Bitcoin’s market cap by $118 billion. Applying this ratio, a $7.38 billion inflow into Shiba Inu could elevate its market cap by $871.4 billion.
With Shiba Inu’s current market cap standing at $9 billion, this influx could push it to $880.4 billion, translating to a SHIB price of $0.001477. This represents a staggering 9,472% surge from its current price of $0.00001543. However, it’s essential to note that this projection is hypothetical and not investment advice. Shiba Inu currently lacks an ETF, and substantial demand would be necessary to realize such inflows.
Disclaimer: This article provides information and not financial advice. The opinions expressed herein are personal and do not necessarily reflect those of The Crypto Basic. Readers should conduct thorough research before making investment decisions, as The Crypto Basic assumes no responsibility for financial losses.