Shiba Inu has the potential to soar to greater heights if a SHIB ETF product captures 30% of the spot Bitcoin ETF inflows following an approval.
The cryptocurrency market is fast appealing to TradFi investors, evidenced by the massive adoption of the spot Bitcoin ETF products months after their launch. Amid the success of the Bitcoin ETFs, industry commentators have evaluated the likelihood of asset managers launching ETFs tracking other crypto assets.
Leading asset management firms such as BlackRock and Fidelity Investments have turned their eyes on Ethereum, but the chances of approval of these Ethereum-based products grow slimmer by the day as the SEC battles Consensys on the status of ETH as security.
Meanwhile, crypto assets such as Shiba Inu have attained sufficient decentralization to secure the non-security status. Amid its numerous lawsuits, the SEC has failed to label SHIB a security, bolstering its chances of seeing a spot ETF. As a result, the Shiba Inu community has called on BlackRock to launch the product, introducing a petition for this cause.
Shiba Inu Price if SHIB ETF Gets 30% of Spot Bitcoin ETF Inflows
However, if such a product does launch, how much would it impact Shiba Inu’s price? The extent of such impact would depend on the adoption it commands. Notably, Bitcoin has seen massive price upswings this year due to the extensive inflows into its spot ETF products, currently totaling $11.946 billion since Jan. 10.
This inflow translates to an average of $2.98 billion in positive net inflows every month. At this pace, Bitcoin’s ETF products could record $35.78 billion inflows by year-end. However, this is highly unlikely to be the case, as the evaluation considers a steady inflow value each month.
Nonetheless, if Shiba Inu witnesses the launch of a SHIB ETF, and this product captures 30% of the projected yearly inflows into spot Bitcoin ETFs, it could see $10.734 billion in capital inflows. This figure would translate to a $100 billion addition to Shiba Inu’s valuation when the Bank of America (BoA) multiplier of 1:10 is applied.
Such a figure would bring Shiba Inu’s market cap to $113 billion, putting it among the top 5 crypto assets by market capitalization. At such a market cap, SHIB could see its price rise to $0.0001917 if its current circulating supply of 589 trillion tokens remains fairly constant. This price represents a 750% rise in Shiba Inu’s current value of $0.00002256.
