Shiba Inu a Step Closer to Realizing SHIB ETF Ambition with Coinbase Futures Listing

Shiba Inu has inched closer to realizing its SHIB exchange-traded fund (SHIB ETF) aspirations with Coinbase listing SHIB futures contracts on its derivatives platform.

This latest development marks a significant milestone in the journey of the world’s second-largest dog-themed altcoin by market capitalization, towards mainstream financial recognition.

On June 28, Coinbase Derivatives initially announced the introduction of five new cryptocurrency futures contracts, including SHIB, under Market Notice 24-14. A subsequent amendment, Market Notice 24-14.1, dated July 10, confirmed the listing of the SHIB futures contract alongside Polkadot (DOT), Avalanche (AVA), and Chainlink (LNK) on July 15.

“Polkadot (DOT), 1k Shib (SHB), Avalanche (AVA) and Chainlink (LNK) will be listed for Trade Date July 15, 2024 as originally shared,” Coinbase Derivatives’ amended Market notice read.

Coinbase Derivatives’ 1k Shib Futures contract is a financial agreement allowing traders to speculate on the future price of Shiba Inu (SHIB) tokens without directly owning them. Each contract represents 10 million SHIB and is based on an index reflecting 1,000 times the current SHIB price.

Traders can use these contracts to bet on price increases (long positions) or decreases (short positions). Unlike traditional trades, settlement occurs in cash, with the price determined by the Market Vector Coinbase Shib benchmark reference rate (CBSHIB).

But how does this work?

For instance, a trader buys a 1k Shib Futures contract at $0.02439, the trader is essentially betting that the price of Shiba Inu will increase in the future. If the price goes up, the trader can sell the contract for a profit. However, if the price goes down, the trader could lose money.

The listing of SHIB futures on Coinbase signifies growing institutional interest in the meme coin. Futures contracts provide investors with a regulated platform to speculate on the future price movements of SHIB, potentially paving the way for a SHIB ETF in the future.

An ETF would allow investors to gain exposure to SHIB without directly owning the cryptocurrency, making it more accessible to a wider range of investors. This could lead to increased liquidity and trading volume for SHIB, further solidifying its position in the crypto market.

The Shib Army, a dedicated community of Shiba Inu cryptocurrency enthusiasts, has been actively campaigning for the launch of a SHIB ETF. They have taken their efforts a step further by initiating a signature campaign urging Grayscale, a prominent digital asset management firm, to introduce a SHIB ETF.

This initiative highlights the community’s commitment to increasing the visibility and legitimacy of Shiba Inu in the broader financial market. The campaign has garnered significant attention, reflecting the growing influence and determination of the Shib Army in advocating for their favorite cryptocurrency.

Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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