- Host of ClayBro, Clay, played down the chances of a Shiba Inu ETF.
- The analyst said Shiba Inu’s size and trade volume aren’t big enough to attract interest.
- A diversified ETF that tracks multiple cryptos is SHIB’s best chance of an ETF.
In a recent video, Clay, the host of the cryptocurrency YouTube channel ClayBro, explained why the Shiba Inu community may have to wait longer to see the launch of a Shiba Inu exchange-traded fund (ETF).
Following the launch of spot Bitcoin ETFs, chances of other crypto-focused ETFs have since raised optimism among several communities. As noted in the video, the SHIB magazine’s latest issue stoked interest in an ETF for the meme coin with a front page question of “When $SHIB ETF?”
Unlike prevailing sentiment, Clay, who is also a renowned member of the SHIB community, played down the chances of a SHIB ETF launch anytime soon. The analyst based this prediction on a number of factors.
Firstly, Clay highlighted that one of the reasons why Bitcoin got institutional backing was because of its size. Bitcoin has a market cap of $836 billion and sees trade volumes in billions, which Clay said increases the profitability of the issuers.
Compared to the flagship cryptocurrency, Clay said Shiba Inu’s market cap is significantly lower than Bitcoin’s. Furthermore, the analyst mentioned that Shiba Inu also sees a trade volume that is incomparable to that of Bitcoin. “I don’t think Shiba Inu in of itself is something we are going to see institutionalized,” Clay remarked.
Alternatively, the analyst suggested that an ETF drawn from a broader cryptocurrency market perspective could work. While using ETFs that track particular stocks and sectors as an example, Clay opined a diversified ETF may be SHIB’s best chance of getting institutionalized.
Using this as an example, the analyst said a memecoin-focused diversified ETF could track multiple tokens such as SHIB and DOGE. This route, Clay explained, will notch up the token’s volume, market capitalization, and the interest of the institutional investors.
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