ETFs
Are Shiba Inu and Dogecoin ETFs on the Horizon?
The Securities and Exchange Commission’s (SEC) approval of Bitcoin cash exchange-traded funds (ETFs) has had a major impact on the cryptocurrency industry. Austin Arnold, co-host of Altcoin Daily, and Scott Melker, host of The Wolf of All Streets podcast, weigh in on what could be coming in the crypto ETF space.
Melker highlighted how ETF approvals opened the floodgates for institutional money to flow into the cryptocurrency market, pushing the price of bitcoin from its cycle lows to impressive highs.
Altcoin Daily’s Arnold also highlighted the importance of ETFs as an on-ramp to institutional investment. He noted that Solana ETFs could be on the horizon, with several filings already in place in the U.S. and Canada.
“Solana is preparing to become this hidden gem in space,” Arnold said.
But Solana is just the beginning. Arnold highlighted five other cryptocurrencies that are ripe for ETF consideration: Chainlink, Polkadot, Stellar Lumens, Avalanche and Shiba Inu. These cryptocurrencies could be on the verge of launching futures products regulated by the Commodity Futures Trading Commission, marking a crucial step toward eventual ETF approval.
Melker noted that some of these products already exist in foreign markets, with the U.S. lagging behind. “We’ve seen altcoin ETFs launch overseas, even an XRP ETF. It’s not a stretch to believe that could happen here,” he said.
The discussion then turned to the broader implications of ETF approval. Both Melker and Arnold agreed that the next evolution could be the creation of index funds encompassing various cryptocurrencies. These could include DeFi funds, metaverse funds, and top 10 crypto funds, aligning with how Americans traditionally invest in mutual funds and ETFs.
“BlackRock loves making money and selling innovative products to its clients,” Arnold emphasized. “This is just the beginning. I can easily see DeFi ETFs and other trending crypto ETFs emerging.”
Melker asked Arnold a thought-provoking question: “Are you an immediate buyer of the Shiba Inu ETF?”
Arnold acknowledged the surprise of Shiba Inu’s inclusion, but saw it as a positive sign for the market’s growth. “If Shiba Inu gets an ETF, all bets are off. There’s no reason why Dogecoin can’t get one as well,” he said, noting the changing landscape of meme coins and their acceptance.
Despite the enthusiasm, Melker remains cautious about immediate approval of these ETFs under the current regulatory regime, but was optimistic about the future. “I think most of them are inevitable in the future,” he concluded.