If a Spot SHIB ETF Is Approved, It Could Witness a Major Price Breakout

Shiba Inu could witness a major price breakout if a spot SHIB ETF is approved and captures just 5% of Bitcoin

Shiba Inu (SHIB) might experience a substantial price breakout if a spot SHIB ETF is approved and manages to capture a small percentage of the Bitcoin (BTC) ETF inflows since January 2024.

As the U.S.-listed Bitcoin spot ETFs have now amassed $38.9 billion in inflows since their inception, this institutional surge has contributed to Bitcoin’s performance in the lead-up to its April 2024 halving and beyond.

In particular, Bitcoin first crossed the $73K mark in March 2024 due to ETF investments. It went on to set a historic record by trading above $100K by the year's end, with ETFs playing a major role in this achievement as their BTC holdings crossed 1.1 million, surpassing even Satoshi Nakamoto's estimated holdings.

This success has prompted other crypto communities to advocate for similar investment products tailored to their assets. Notably, the Shiba Inu community has been particularly vocal, calling for an ETF to be listed. At press time, a petition urging Grayscale to consider a SHIB ETF has gathered over 11,600 signatures.

This grassroots interest stems from the hope that a fund investing in SHIB could propel the asset upward, much like what was seen with Bitcoin.

While a SHIB ETF is still speculative, The Crypto Basic can examine the potential impact of even modest ETF inflows.

If Shiba Inu were to attract just 5% of the $38.9 billion in Bitcoin ETF inflows, that would translate to $1.945 billion entering the SHIB market. Using a conservative 1:10 multiplier effect commonly applied in speculative forecasting, this capital could potentially increase Shiba Inu's market cap by up to $19.45 billion. The idea is that every $1 of ETF inflow can generate $10 of market cap growth.

With Shiba Inu's current market cap at $8.19 billion and its price at $0.00001371, a $19.45 billion boost would raise its total valuation to $27.64 billion. Assuming the circulating supply remains around 589 trillion SHIB, this would equate to a projected price of approximately $0.00004693.

This represents a more than 240% increase from the current price. Notably, this projected price would still place SHIB below its all-time high.

Reaching this level would mark a historic development, as Shiba Inu last saw the $0.000046 price point in 2021. It came close again in March 2024, buoyed by Bitcoin's ETF-induced surge, but has since dipped significantly.

Interestingly, the prediction platform Telegaon suggests Shiba Inu could reach $0.000046 and even surpass it by the end of 2025. Notably, their forecast did not account for any ETF-related buying pressure.

However, analysts at Changelly are less optimistic, believing it could take Shiba Inu another three years to re-enter the $0.000046 range.