I have covered the whole back of quilts with chenille for not only my own child but for my husbands best friends new baby. I did wasn the quilt several times after it was done, and got a LOT of lent out of the washer AND dryer. I think it took about three or four washes for it to stop shedding. I have not had a problem with my (almost) five month old getting sick or anything from it! Dawn (my husbands friend) has not said anything about it either!
Good luck!