Shiba Inu Price Could Skyrocket to Unimaginable Levels if a SHIB ETF Gains Approval and Commands 50% of the Bitcoin ETFs Flows

Institutional investors entered the crypto scene following the launch of the spot Bitcoin ETF products. After their eventual launch in January

Shiba Inu price could skyrocket to unimaginable levels if a SHIB ETF gains approval and commands 50% of the Bitcoin ETFs flows.

Institutional investors entered the crypto scene following the launch of the spot Bitcoin ETF products. After their eventual launch in January, these investment products attracted massive capital, pumping these funds into the Bitcoin market and catalyzing a positive price reaction.

The Success of Bitcoin ETFs

As a result, Bitcoin rallied to a new all-time high above $73K in March 2024, right before the latest halving event, marking the first time this phenomenon occurred in a halving year.

While flows into these investment products slowed amid the corrective phase of the market from mid-March. Now, with the latest market rebound, inflows have resumed in recent weeks. As a result, the Bitcoin ETF products have now witnessed a massive $21.4 billion in cumulative capital inflows since January.

Amid the success of the Bitcoin ETFs, the crypto community turned to the possibility of subsequent ETF products tracking other crypto assets.

Being the second-largest crypto asset, Ethereum (ETH) was naturally the choice for this. Notably, Ethereum ETFs secured regulatory approval in July, but have not enjoyed as much success as their Bitcoin counterparts.

Despite this, market commentators are now looking out for the next cryptocurrency to secure ETF products. Asset managers have already filed to launch ETFs tracking Solana (SOL) and XRP, but these are yet to secure approval.

Possibility of a Shiba Inu ETF

However, some have argued for a Shiba Inu ETF. The Shiba Inu project has expanded its ecosystem, looking to transcend its meme origin to become a contender in the utility token space. Amid these developments, individuals like content marketer Lucie believe a SHIB ETF is likely to launch.

In addition, the Shiba Inu community launched a petition in June to ask Grayscale, the largest digital asset manager, to file for a Shiba Inu ETF with the SEC. While the petition has gained momentum, should Grayscale decide to file for the product, it would still require regulatory approval before launch.

Meanwhile, the introduction of such a product would bring immense benefit to the Shiba Inu market, which requires an inflow of fresh capital. However, the extent of this benefit remains to be seen.

As a result, we recently assessed how much Shiba Inu could rally if it records 50% of the total cumulative Bitcoin ETF inflows. For context, with spot Bitcoin ETFs now boasting $21.4 billion in net capital flows, 50% of this figure is $10.7 billion. An injection of this capital into SHIB would mark a turning point for the market.

Leveraging only a quarter of the Bank of America (BoA) multiplier of 118x would bring in a multiplier of 29.5x. With this 29.5x multiplier, the $10.7 billion capital inflow could translate to an additional market cap figure of $315.65 billion.

Shiba Inu currently boasts a market cap of $10.5 billion with a supply of 589 trillion tokens. An addition of $315.65 billion to this market cap would lead to a valuation of $326.15 billion. This market cap translates to a price of $0.0005537 per SHIB, considering the 589 trillion supply remains fairly the same. Shiba Inu must rally 3,000% from its current price to reach this price level.

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