The Shiba Inu (SHIB) community is being rallied to sign a petition requesting Grayscale Investments to consider the launch of Shiba Inu ETF.
The petition, now listed on the Change.org platform, began on February 25 and was specifically directed to Grayscale CEO, Michael Sonnenshein. The publicity for the Shiba Inu ETF proposal is being spearheaded by pseudonymous community builder SHIB BPP.
🚨 Calling all #SHIBARMY and crypto supporters! Let's make history together by signing the petition for a Shiba Inu (SHIB) ETF 🐕📈https://t.co/IBRHcam9ug
This is our chance to bring $SHIB to the forefront of mainstream investment.
Sign, share, and let's soar together! ✍️💪…
— $SHIB BPP (@ShibBPP) February 25, 2024
Need for Shiba Inu ETF
The emergence of the spot Bitcoin ETF triggered a paradigm shift in the crypto ecosystem with investors now anticipating a more widespread suite of options.
Asset management firms have already filed applications for spot Ethereum ETF and the clamor for a Shiba Inu ETF is the first collective push for a meme coin.
This development comes a month after the SHIB Magazine featured a thought-provoking question in one of its issuances: “Wen SHIB ETF?” The question triggered community speculation, with the recent petition one of the products of this speculation.
The petition is already garnering support from members of the Shiba Inu ecosystem having received 619 Signatures out of the required 1,000. The proponents of the Shiba Inu ETF gave four major reasons to justify the need for the product.
The first is the Google Trends data that positioned Shiba Inu as the second most popular cryptocurrency in the United States.
The sponsors of the petition argued that this popularity indicates its ecosystem’s readiness for a SHIB-based ETF. Secondly, they argue that with a SHIB ETF, there will be ease of accessibility to investors, a move that will simplify the embrace of the token.
They argued that, being an ERC-20 token, Shiba Inu already passes the Howey Test as a non-security. As a result, Grayscale would not have any regulatory issues with launching a SHIB ETF.
In all, the sponsors appealed that the Shiba Inu ETF will help Grayscale expand its leadership in the crypto and ETF terrain across the board.
Will the Market Welcome a Shiba Inu ETF?
Speculations might not be helpful at this stage but should the petition hit its desired mark, the main hurdle will begin as it will now be left for Grayscale to add support for Shiba Inu.
Grayscale operates some of the largest trusts in the crypto scene. Currently, the firm has no Shiba Inu Trust that it can easily file to convert to an ETF with the US Securities and Exchange Commission (SEC).
The chances of getting a SHIB ETF anytime soon are also low, seeing there is no Shiba Inu Futures ETF at the moment, a product that is often a precursor to an spot ETF approval.