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Pseudonymous crypto expert and YouTuber ‘Altcoin Daily’ suggests that the upcoming launch of Coinbase Derivatives’ CFTC-regulated Shiba Inu’s futures contract could pave the way for a spot ETF.
Altcoin Daily issued the speculation in an X post yesterday, emphasizing the significance of the upcoming futures contracts.
Coinbase Derivatives to Launch Regulated SHIB Futures Contract
Last week, Coinbase Derivatives requested permission from the U.S. CFTC to launch regulated futures contracts for Shiba Inu alongside four cryptocurrencies: Stellar (XLM), Chainlink (LINK), Polkadot (DOT), and Avalanche (AVAX).
The derivatives exchange disclosed plans to list the products under a self-certification model scheduled for July 15, 2024.
Futures Contract Could Pave the Way for Spot ETFs
Reacting, Altcoin Daily took to X to highlight the benefits of the offering for U.S. investors. According to the expert, regulated futures contracts offer investors enhanced transparency, regulatory oversight, a compliant trading environment, and risk management.
Interestingly, the expert noted that these products often lead to the potential launch of spot ETFs for the assets involved.
Coinbase to launch CFTC-regulated futures for 5 altcoins starting on July 15th.
— Chainlink $LINK
— Polkadot $DOT
— Stellar $XLM
— Avalanche $AVAX
— Shiba Inu $SHIBRegulated futures contracts offer investors
— enhanced transparency
— regulatory oversight
— risk… pic.twitter.com/jh2ITIdVUO— Altcoin Daily (@AltcoinDailyio) July 2, 2024
In a follow-up YouTube video, Altcoin Daily asserted that the SEC approved spot ETFs for Bitcoin (BTC) and Ethereum (ETH) because they initially had regulated futures contracts.
“The Bitcoin [and] Ethereum ETFs only got approved because they had futures contracts first,” Altcoin Daily remarked.
Bloomberg ETF analyst Eric Balchunas also expressed a similar sentiment last month in reaction to VanEck’s Solana spot ETF filing. According to Balchunas, his knee-jerk reaction to the filing was that the SEC would not approve a Solana ETF due to the absence of a futures contract for the asset.
Shiba Inu Community Optimistic About a Spot ETF for SHIB
In the meantime, several Shiba Inu community members anticipate that a regulated SHIB futures contract on Coinbase Derivatives could lead to a potential SHIB spot ETF.
Since the SEC approved multiple Bitcoin spot ETFs in January, the community has been eyeing a similar offering for SHIB. This prompted enthusiasts to petition Grayscale Investments to apply for the launch of a spot SHIB ETF.
Although Grayscale has not responded to this request, the imminent launch of a regulated SHIB futures contract could further solidify investors’ confidence in the possibility of a spot ETF for the token.