BlackRock's Potential $100 Billion Impact on Shiba Inu (SHIB)

Shiba Inu (SHIB) has long been a favorite among retail investors and crypto enthusiasts, with its explosive growth making waves in the digital asset space.

Shiba Inu (SHIB) has become a favorite among retail investors and crypto enthusiasts for its incredible price movements. Now, as the dust settles on 2024, we take a look at what could happen if a giant like BlackRock decided to invest in SHIB.

Institutions Are Finally Entering the Crypto Market

The year 2024 saw the U.S. Securities and Exchange Commission (SEC) finally approve Bitcoin ETFs, a milestone event that shook the industry. Among the approved ETFs was the BlackRock Bitcoin ETF (IBIT), which quickly began collecting assets.

In 2024, IBIT secured $37 billion in assets, placing it third on the global ETF leaderboard, highlighting the massive demand for crypto exposure among institutional investors. This interest was sparked in January 2024 with the SEC’s approval of Bitcoin ETFs, leading to a surge in Bitcoin’s price.

Starting the year at around $48,000, Bitcoin rapidly climbed to an all-time high of $100,000 by December 2024. This price action was fueled by the growing institutional demand for cryptocurrency exposure, especially through ETFs.

Also Read: Bitcoin Price Remains Above $90,000 Despite Reports of Largest BTC Holder's Activity

While several major asset managers, including Grayscale, Bitwise, and Franklin Templeton, filed for ETFs related to other cryptocurrencies, such as Dogecoin and XRP, none of them filed for a Shiba Inu ETF. However, if a major firm like BlackRock decided to create a SHIB ETF and invest a significant portion of its capital into it, it could have interesting implications.

The Impact of a $100 Billion Investment

BlackRock, the world’s largest asset manager, manages a staggering $10 trillion in AUM. If the firm decided to allocate 1% of this capital, amounting to $100 billion, into Shiba Inu, it could have a significant impact on SHIB’s price.

At present, Shiba Inu’s market cap stands at $7.45 billion, with one SHIB token priced at $0.000013. According to a theoretical analysis using estimates from OpenAI’s ChatGPT, an infusion of $100 billion into SHIB, assuming the supply of tokens remained constant, could push the price to approximately $0.0001696.

This would represent a 13.07x increase from the current price, meaning that SHIB holders could see their investments grow more than 13 times if BlackRock invested just 1% of its capital.

Considering Other Institutional Giants

While BlackRock’s potential involvement is noteworthy, it’s not the only institutional player to keep an eye on. If other massive asset managers decided to invest in SHIB, the collective impact could be substantial.

For instance, Vanguard manages AUM of $8.3 trillion. A 1% allocation from Vanguard would result in an $83 billion investment in Shiba Inu, potentially raising the price to around $0.00014, a 10.8x increase from current levels.

Fidelity, on the other hand, has AUM of $4.5 trillion. With Fidelity allocating 1% of its capital, SHIB’s price could rise to approximately $0.0076, reflecting a 5.9x increase.

The Bottom Line

Shiba Inu’s potential for growth, especially in the face of institutional interest, is an exciting prospect for investors. A 1% investment from BlackRock, Vanguard, or Fidelity could significantly raise SHIB’s price.

However, it’s crucial to remember that the likelihood of such a massive investment remains slim, and the prospect of major asset managers investing in an altcoin like Shiba Inu is a scenario that many would prefer to keep in the realm of possibilities.