Shiba Inu’s Growing Market Could Pave the Way for ETF Launch

The possibility of an SHIB ETF highlights its growth from meme coin to a market contender, drawing more institutional interest.

Shiba Inu's Layer 2 solution, Shibarium, could see greater adoption, boosting the demand for BONE as the network’s gas token.

SHIB’s ETF potential showcases a structural advantage over other meme coins, leveraging its expanding ecosystem for growth.

Speculation around the launch of a Shiba Inu (SHIB) exchange-traded fund (ETF) is intensifying. Following the successful introduction of Bitcoin and Ethereum ETFs, attention has shifted to whether SHIB could follow suit. As interest in regulated crypto products rises, many are considering whether the scale and liquidity of Shiba Inu make it a viable candidate for institutional-backed exposure.

The team of Shiba Inu has focused on the expansion of the project since its meme coin beginnings. Having a multi-billion-dollar market value and a strong representation on major exchanges, SHIB has taken the shape of a household name in the retail investor market

These are similar to the early years of Bitcoin and Ethereum, when they did not yet get the approval of their own ETFs. A SHIB ETF would offer a controlled manner in which institutions can access the asset, which could cause a significant inflow.

How the Shiba Inu ETF will affect Shibarium and BONE.

Although the SHIB ETF would follow the price of the token directly, the Layer 2 solution of Shiba Inu, Shibarium, would be indirectly impacted by the adoption. All operations in Shibarium have to use BONE as gas, and a boom in SHIB usage may drive BONE demand up. With more adoption, which is a result of ETF recognition, developers could add to the number of decentralized applications (dApps) that operate on Shibarium, which would further boost the number of network transactions, as well as the role of BONE in the ecosystem.

In contrast to Dogecoin and PEPE, Shiba Inu is one of the cryptocurrencies that makes use of Shibarium as a live Layer 2 scaling solution. This infrastructure will be a distinct competitive edge compared to other meme coins and will put SHIB and its ecosystem in the spotlight of possible institutional buying. The further appearance of SHIB in the form of an ETF may attract more individuals to the infrastructure, which will result in more appreciation of BONE as a part of the growing ecosystem of Shiba Inu.

The post Shiba Inu’s Growing Market Could Pave the Way for ETF Launch appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.