Shredded coconut is just coconut that has been shredded and usually dehydrated. Since coconut is Paleo, there’s no reason we can’t have shredded coconut.
All The Coconut Goodness
Unlike coconut flour, shredded coconut hasn’t had any of the fat removed, which actually makes it preferable to coconut flour. It comes with a hefty dose of fat (most of which is saturated), with some fiber and a little bit of protein. It’s also just a little bit sweet, which makes it perfect for topping off desserts or adding to smoothies.
Mark Sisson has a whole post on all the different coconut products you can try, along with their relative health benefits.