The potential arrival of Ethereum (ETH) spot exchange-traded funds (ETFs) in the U.S. has ignited a spark of excitement, particularly for holders of Shiba Inu (SHIB) tokens. Could this long-awaited development trigger a meteoric rise in SHIB prices, or are more measured predictions a safer bet?
Riding the Ethereum Wave?
Crypto price tracker Coinpedia Markets recently released a bold forecast, suggesting a potential 10x to 100x price increase for SHIB, alongside other tokens, upon the launch of Ethereum ETFs. This speculation hinges on the historical correlation between SHIB and ETH prices. Data shows a strong 30-day correlation of 73%, indicating that significant price movements in ETH often translate to similar fluctuations in SHIB.
Coinpedia Markets’ forecast translates to potential price points of $0.000166 per SHIB token for a 10x increase and a staggering $0.001667 for a 100x surge (based on the current price of $0.00001667). It’s important to remember, however, that these are hypothetical scenarios and shouldn’t be considered financial advice.
The ETF Effect: Mainstream Investment on the Horizon?
The anticipation surrounding Ethereum ETFs centers on the potential for increased mainstream investment in the cryptocurrency space. ETFs offer a regulated and familiar investment vehicle for traditional investors, potentially attracting significant new capital to the crypto market. This influx of investment could drive up the price of ETH, and by extension, influence SHIB due to their historical price correlation.
The SEC Holds the Key
The approval process for Ethereum ETFs has been ongoing, with the SEC granting preliminary approval for eight spot ETFs in May 2024. However, the final green light rests on the approval of S-1 applications by prospective issuers. With amended applications submitted by industry players like VanEck and 21Shares, the SEC’s final verdict will determine the official launch date of these ETFs. Whttps://www.vaneck.com/us/en/hile the exact date remains unknown, market experts anticipate a decision by the end of July 2024, further fueling speculation about price movements in both ETH and SHIB.
Also Read: Shiba Inu Goes DeFi: Shib Marketplace Promises Secure NFT Marketplace & Fractional Ownership
Beyond the Hype: Long-Term Vision
It’s crucial to remember the inherent volatility of the crypto market. While the potential approval of Ethereum ETFs presents a chance for a price increase in SHIB, it’s just one factor among many. Previous SHIB price predictions suggest a more gradual increase, with estimates of $0.0001 by 2027 and $0.001 by 2030. These longer-term predictions likely take into account factors like project development, community growth, and broader market adoption of cryptocurrencies.
The verdict? Time will tell if Ethereum ETFs unleash a SHIB price surge. Investors are wise to consider both the potential for short-term gains and the long-term vision for the project before making any investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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