Shiba Inu could see an impressive increase of 9,472%, reaching a new all-time high of $0.001477 if it managed to capture just 50% of the capital inflows seen by Bitcoin ETF products.
📈 Success of Bitcoin ETFs and Potential for Shiba Inu
After years of continuous rejections and delays, the U.S. SEC approved the trading of Bitcoin spot ETFs in January. These products have so far been hugely successful, with capital inflows amounting to billions of dollars. Since January 10, Bitcoin spot ETF products have recorded total net inflows of $14.76 billion, according to Farside Investors data.
Despite an initial drop that had pushed the total above $15 billion, the negative market trend has brought net inflows below this threshold. However, the $14.76 billion in net inflows over seven months is a remarkable result.
🌐 Demand for a Shiba Inu ETF
Late last month, asset management firm VanEck applied to launch the first Solana ETF in the U.S. market. Meanwhile, during the ETF frenzy, members of the Shiba Inu community have pushed for the launch of a Shiba Inu ETF. The community has sent a petition to Grayscale Investments for the launch of such a product.
Although the petition has garnered attention, Grayscale has not yet responded. The growing demand for a Shiba Inu ETF is based on the potential impact the product could have on the price of Shiba Inu. If demand were high, ETFs could attract enough capital to the Shiba Inu market.
💹 Potential Impact on SHIB Prices
The Crypto Basic recently evaluated this scenario in the event that Shiba Inu ETFs recorded half the inflows of Bitcoin ETFs. Notably, 50% of the $14.76 billion figure is $7.38 billion.
However, if Shiba Inu ETFs recorded inflows of $7.38 billion, the impact on market capitalization would be very significant. Bank of America has estimated this impact as a 1:118 ratio for Bitcoin, meaning BoA analysts expect Bitcoin’s market capitalization to increase by $118 billion for every billion dollars that flows into Bitcoin spot ETFs.
Applying this estimate to Shiba Inu, an inflow of $7.3 billion could lead to a market capitalization increase of $861.4 billion. Currently, Shiba Inu’s market capitalization is $9 billion, with the potential to increase to $870.4 billion with an additional inflow of $861.4 billion. This valuation of $870.4 billion would translate the price of SHIB to $0.001477, marking an increase of 9,472% from the current price of $0.00001543. However, it is important to note that this is only a hypothetical valuation and should not be considered as investment advice. Shiba Inu does not yet have an existing ETF, and such inflows would require immense demand.
🚫 Disclaimer
This content is informational and should not be considered as financial advice. The opinions expressed in this article may include the personal views of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
