The US Securities and Exchange Commission (SEC) on Friday approved NYSE Arca’s rule change for the T. Rowe Price Active Crypto ETF, increasing its actively managed crypto fund to 15 assets. According to the filing on June 12 by T. Rowe, the institutional giant will allow two meme currencies in its portfolio, including Shiba Inu and Dogecoin.
The 15 cryptos under the T. Rowe ETF approved by the SEC are Bitcoin, Ethereum, Solana, XRP, Cardano, Avalanche, Litecoin, Polkadot, Dogecoin, Hedera, Bitcoin Cash, Chainlink, Stellar, Shiba Inu, and Sui. The move makes institutional clients open to crypto ETFs ranging from meme coins to altcoins and the regular top-most digital assets.
Also Read: Shiba Inu’s Downtrend Has Gone Out of Hand (SHIB)
Will Shiba Inu Benefit From T. Rowe’s ETF?
Shiba Inu will benefit from the T. Rowe ETF, but it depends on the allocation size from the institutional giant. The $1.8 trillion asset management firm will most likely deploy the majority of funds into Bitcoin and Ethereum, and divide the rest of the funds into other tokens. So the amount that could enter SHIB could be a fraction of the overall ETF entry into other assets.
While even a fraction of the amount will likely be huge, it needs to fulfil the rest through retail traders. Both institutions and retail traders need to combine to make Shiba Inu surge in value. A one-sided ETF investment cannot push the needle if trading activity from retailers fails to rise. It would create an imbalance, as when T. Rowe sells, SHIB might not have a support zone.
The situation for Shiba Inu is bleak, as the meme currency has nothing to offer to the financial world. The dog-themed token does not solve any issue plaguing the monetary markets and is just a token in the meme sector. In conclusion, a sudden spike in value for SHIB even after the T. Rowe ETF looks questionable.
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