The Shiba Inu community is relentlessly pushing for an Exchange-Traded Fund (ETF) tied to SHIB. The community started a petition regarding this Shiba Inu ETF bid on Change.org, about 2 months ago with a focus directed towards Grayscale Investments.
Shiba Inu ETF Push Riding on Grayscale’s Legacy
The petition on Change.org has gained momentum, reaching over 10,500 signatures. It is aiming for 15,000. The SHIB Army’s demand for a Shiba Inu ETF, released on Feb. 25 targeting Grayscale Investments’ former CEO Michael Sonnenshein, is strategic.
The community acknowledges Grayscale’s significant role, solidifying its position as a leader in creating crypto asset investment products in the United States. Grayscale’s persistent endeavors to transition its Bitcoin Trust into a spot ETF finally bore fruit in January 2024, becoming the world’s largest spot Bitcoin ETF issuer at the time.
However, BlackRock iShare Bitcoin Trust (IBIT) has beaten Grayscale to the title, with a record of over $19 billion in Assets Under Management (AUM). Building on the Spot Bitcoin ETF milestone, the firm filed to transform Ethereum Trust into a spot ETF as well. The community appeal resonates with Grayscale’s strategy to convert its 17 crypto trusts into spot ETFs.
In the twist of events, the Crypto-Vanguard reported in May that Grayscale has pulled back its 19b-4 submission for an Ethereum Futures ETF.
The Potential Implication Of A SHIB ETF
While multiple Bitcoin ETFs have garnered the green light in recent years, and continuously seeing increased inflows, the landscape for other crypto assets remains largely untapped in the ETF market.
The SHIB ETF will pave the way for wider acceptance of digital assets in finance. Its approval could legitimize Shiba Inu and boost liquidity and stability for the memecoin. With massive capital, prices may be stabilized while reducing the extreme fluctuations associated with the token
As the petition gains more momentum, the focus is now shifting to how Grayscale and regulatory bodies will react if the petition passes. Its outcome could set a precedent for crypto-linked products and shape the market’s path.
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