The Shiba Inu Community Advocates for Grayscale to Launch an ETF
Similar to Bitcoin (BTC), supporters of the Shiba Inu (SHIB) ecosystem are pushing for the introduction of an Exchange Traded Fund (ETF) product. The community is calling for this product in a unique manner, through a petition directed at Grayscale Investments.
According to the Change.org petition, members of the Shiba Inu community have urged Grayscale CEO Michael Sonnenshein to consider applying for a SHIB ETF due to the token’s current alignment with the Howey test, indicating it is not categorized as a security. They argue that this alignment would streamline the process for the company to venture into this area while avoiding regulatory hurdles.
Furthermore, proponents of the SHIB ETF have highlighted the asset’s popularity as a key indicator of the U.S. market’s readiness for a spot SHIB ETF. With institutional adoption now gaining momentum following the SEC’s approval of spot Bitcoin ETFs in January, supporters of the SHIB ETF believe that introducing this product will enhance accessibility to Shiba Inu for a wider range of investors.
The petition is gaining momentum with 671 signatures out of the required 1,000. The outcome of whether Grayscale Investments will respond positively to the SHIB community’s request for an ETF remains uncertain.
ETF Evolution
Following the approval of all 11 spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) last month, a new sense of potential possibilities has emerged within the market. Various community members are now optimistic that, similar to the success of BTC ETFs, other digital assets could follow suit.
Aside from the increasing call for a SHIB ETF, there has been a growing demand for an XRP ETF, with discussions within the community dating back to the last quarter of the previous year. The XRP community received a boost when Ripple CEO Brad Garlinghouse acknowledged the potential for an ETF tracking the coin’s value.
The SEC is facing challenges in deciding on an Ethereum ETF, illustrating the obstacles that other altcoins, especially those with existing futures ETFs, might encounter in their pursuit of a spot ETF in the near future.