Shiba Inu Team Gives 4 Reasons Why SHIB ETF Is Imminent

Shiba Inu Marketing Lead Lucy recently spoke out about a possible SHIB ETF, causing a stir across the cryptocurrency industry. In a post she shared on X on July 11, she highlighted a key aspect of why an ETF would be so beneficial and offered a glimmer of hope that one could be launched soon.

With the launch of the Ethereum ETF looming and the SOL ETF in the works, the comments about the SHIB ETF are quickly gaining attention across the cryptocurrency market. Let’s take a closer look at the Shiba Inu marketing leader’s comments and why they have sparked optimistic discussions in the cryptocurrency community around the world.

Lucy points out the benefits of the SHIB ETF and a ray of hope that will soon be launched

Notably, Lucy appeared on X to highlight four key benefits of the potential launch of the SHIB ETF, including:

Accessibility: Shiba Inu exchange-traded funds pave the way for traditional investors to invest in meme-based assets without the hassle of going through an exchange.

Regulation and Security: Lucy focused on how ETFs function as regulated financial instruments, which gives investors an extra layer of security and compliance, and also attracts institutional investors.

Diversification: “ETFs contain a basket of related assets and can reduce risk through diversification,” Lucey added.

Increased demand: As previously seen with the launch of the Bitcoin ETF, listing a digital asset on an ETF can significantly increase its demand and liquidity. At the same time, “listing SHIB on an ETF could increase demand and liquidity, potentially raising its value,” Lucey said.

While these factors have sparked optimism for the upcoming SHIB ETF, marketers also noted potential obstacles Shiba Inu may encounter in its DeFi endeavors.

Lucy points out the flaws

Lucey said launching an ETF could come with a number of obstacles, including:

Centralization vs. Decentralization: Exchange-traded products centralize control over assets, which is in stark contrast to the decentralized ethos of DeFi.

Loss of direct ownership: Investing in ETFs eliminates involvement in DeFi activities such as staking and governance, facilitating investment opportunities by losing involvement in the project.

Decreasing engagement: The above factors directly correlate with lower active participation within the ecosystem, thereby weakening it.

Costs and Regulations: Lucey added that ETFs come with management fees and regulatory oversight that can alienate cost-conscious DeFi participants while providing safety and legitimacy to cautious investors. These factors can have a negative impact on Shiba Inu’s market performance, as seen recently with the re-filing of Ethereum’s S-1 amendment form.

Related article: Republicans should unite to stop anti-cryptocurrency SEC Commissioner Crenshaw, says Pat Tommey

Shiba Inu Market Performance

Meanwhile, SHIB price today fell 1.57% in line with the overall market trend to $0.0000165, trading in the red zone, with the lowest and highest prices over the 24 hours being $0.00001619 and $0.00001682, respectively.

Shiba Inu’s 14-day RSI is hovering at the 42 level today, suggesting that the asset is neither overbought nor oversold, but that there may be some downward pressure. That said, a recent price analysis by CoinGape Media noted that investors could see a 30% drop in SHIB prices before a major rally, offering a glimmer of hope for the meme coin’s long-term prospects and the possibility of a future SHIB ETF.

Related article: Justin Sun buys $5 million worth of ETH ahead of Ethereum ETF approval

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