Shiba Inu Secures Key Institutional Recognition, Broadening Crypto ETP Horizons
Shiba Inu Secures Key Institutional Recognition, Broadening Crypto ETP Horizons
Shiba Inu (SHIB) has achieved a significant milestone by being included in the FTSE Grayscale Crypto Sectors Framework, a move signaling fresh institutional recognition. This inclusion places SHIB in the Consumer & Culture sector alongside Dogecoin and signifies that it meets the SEC’s Generic Listing Standards (GLS) criteria, potentially paving the way for easier Exchange Traded Product (ETP) listings. The article also highlights other cryptocurrencies, including XRP, Litecoin, Stellar, Bitcoin Cash, Polkadot, Cardano, Solana, Avalanche, and Chainlink, that meet these GLS thresholds, with Solana and Litecoin already having trading ETFs in the US. Despite recent price volatility for SHIB, the institutional developments are viewed as a positive long-term indicator.
Shiba Inu's Institutional Leap
The Shiba Inu (SHIB) ecosystem is celebrating a major win as the meme coin has officially been added to the FTSE Grayscale Crypto Sectors Framework. This strategic inclusion grants SHIB enhanced institutional recognition, positioning it within the Consumer & Culture sector alongside Dogecoin (DOGE). The announcement, championed by Shiba Inu's marketing lead, Lucie, underscores a significant step for the token's legitimacy in the broader financial landscape.
FTSE-Grayscale Framework and GLS Criteria
Launched in 2023, the FTSE-Grayscale framework aims to categorize crypto assets for investors, and its latest report is particularly notable. SHIB is listed among a select group of assets that meet the SEC’s Generic Listing Standards (GLS) criteria, approved in September. These standards simplify the process for exchanges to list crypto ETPs, removing the need for individual token sign-offs and potentially opening more straightforward pathways to spot ETPs, provided an effective registration statement is in place.
Wider Crypto Landscape for ETPs
Reports reveal that at least 11 cryptocurrencies across four distinct sectors meet these critical GLS thresholds. The Currencies sector includes XRP, Litecoin (LTC), Stellar (XLM), and Bitcoin Cash (BCH). Smart contract platforms that qualify are Polkadot (DOT), Cardano (ADA), Solana (SOL), and Avalanche (AVAX). Chainlink (LINK) stands as the sole representative in Utilities & Services. Within the Consumer & Culture sector, only Shiba Inu and Dogecoin are recognized.
Currently, Solana and Litecoin have active ETFs trading in the US, while Cardano, XRP, Dogecoin, and Bitcoin Cash are still awaiting regulatory approvals. Globally, SHIB has already seen an ETP issuance by Valour Inc. in Europe, and asset manager T. Rowe Price has acknowledged SHIB as a candidate for its Active Crypto ETF, although a standalone spot ETF filing for SHIB in the US is yet to materialize.
SHIB's Market Performance
Despite these significant institutional advancements, SHIB's recent price action has been mixed. The token experienced a more than 6% decline in the past 24 hours, alongside corrections of approximately 13% over the last week and 30% in the past month, pushing its market cap ranking down to 34th. However, market analysts point to a long-term support trendline that has historically preceded sharp rebounds, suggesting that the current pullback might be temporary and could pave the way for future rallies.