SHIB Versus Dogecoin ETF: Which Will Launch First?

The members of the community are seriously weighing the prospects of a SHIB ETF amid regulatory uncertainty under the current SEC leadership

There is ongoing speculation that Shiba Inu (SHIB) Exchange-traded Funds (ETFs) may be launched before its Dogecoin (DOGE) counterparts. This information has set the broader crypto market abuzz in recent times. 

Market Cap Could Impact SHIB ETF Chances

According to renowned on-chain tracker Whales HQ, Wall Street experts are looking forward to the implementation of a SHIB ETF launch. 

BREAKING: Wall Street experts predict a $SHIB ETF could be launched in the near future. pic.twitter.com/Ww7TLNKbdy

— Whales HQ (@WhalesHQ) October 7, 2024

The news has left many enthusiasts speculating whether a DOGE ETF will ever come. Historical trends have shown that when these digital asset-backed ETFs are launched, they propel substantial money inflow into the ecosystem. Hence, if an SHIB ETF is introduced, the market might feel a positive impact. 

On the other hand, there is serious doubt about a SHIB ETF. This is based on the relatively smaller Shiba Inu market cap, currently pegged at $10.7 billion.

When spot Bitcoin ETF received approval from the US SEC, it boasted a market cap of over $1.25 trillion. Similarly, the second crypto with an ETF, Ethereum, had a market cap of $297 billion at launch.

Based on this metric, market observers think that DOGE has a greater chance than Shiba Inu. Dogecoin is the largest memecoin based on market cap and has a valuation of $16.4 billion at the time of this writing. 

Asset Managers Reach For Solana and XRP ETF Filings 

Meanwhile, cryptocurrencies like Solana (SOL) and XRP are already ahead per consideration for ETF. 

A few months ago, VanEck and 21Shares submitted their individual SOL ETF filings. However, they were pulled from the Cboe website, where they were formerly registered. Nate Geraci, President of ETFStore, thinks Solana ETF will only get approval after the current SEC Chair leaves. 

Still, VanEck has no plans to back down from pursuing the offering. Matthew Sigel, Head of Digital Asset Research at VanEck, highlighted that Solana is a commodity like Bitcoin and Ethereum. He cited legal perspectives, among other reasons, to support his argument. 

In the case of an XRP ETF, asset management firm Bitwise has already filed for the offering. Bitwise’s filing signals its intention to create a regulated product, allowing institutional investors to gain exposure to XRP. Bitwise officially submitted a Form S-1 registration statement to the SEC.

Market participants thought SHIB and other crypto ETFs would emerge immediately after the SEC approved spot Bitcoin ETFs. However, this is proving more complicated for the reasons highlighted earlier.

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