Waiting on altcoin season can try the patience of even the most dedicated cryptocurrency investors. Still, if bitcoin can steady or build on a couple days of recent strength, it’s possible momentum will return to the altcoin.
Recently, some signs emerged of altcoin firming. However, it remains difficult for many investors to pick individual winners in this segment. That’s why the CoinShares Altcoins ETF (DIME) is worth examining. The actively managed ETF provides investors with access to a basket of higher tier altcoins, eliminating the individual token selection burden. Should a credible altcoin rebound materialize, DIME’s utility could shine through.
“It’s worth considering altcoins as a group separate from Bitcoin, which often has its own market dynamics. The performance of various coins can be parallel at times, but there have also been instances where Bitcoin stumbled while many other altcoins flourished,” reports Business Insider.
DIME may be worth near-term examination because cryptocurrency’s albeit brief history indicates there occasions when market participants will move on from Bitcoin, but not leave crypto altogether.
“For example, investors might rotate capital out of Bitcoin to take some profits after a strong bull run for that cryptocurrency. But if they still have conviction in the crypto market, they might keep that money invested in crypto and rotate it into other altcoins that could potentially be multi-baggers the way Bitcoin has been in the past,” according to Business Insider.
From that, it may be inferred that investing in altcoins isn’t for the faint of heart and it’s not, but DIME’s multi-coin basket can potentially defray some of that risk. Additionally, the ETF may over some longer-ranging value for risk-tolerant investors looking to broaden their digital currency horizons beyond Bitcoin.
“Many altcoins have practical applications, such as for decentralized finance (DeFi) and gaming. If particular coins or tokens are deemed to have growing use cases, that can cause a bull run in those assets, along with related altcoins,” observes Business Insider.
One way of looking at that is as altcoin use cases expand, the buy in from investors is likely to increase, potentially stoking higher prices for the assets and perhaps DIME. In the meantime, HODLers can rest assured that when it comes upper tier altcoin, DIME provides that exposure.
