On Tuesday, CoinShares expanded its ETF lineup with the release of the CoinShares Altcoins ETF (DIME).
DIME seeks to generate capital appreciation through a diversified portfolio of altcoins. The fund is actively managed and has a net expense ratio of 95 basis points.
“The altcoin market represents some of blockchain’s most innovative developments, but accessing these opportunities through traditional channels in the United States has been nearly impossible,” noted Jean-Marie Mognetti, CEO of CoinShares. “DIME changes that as part of our U.S. market expansion, bringing diversified altcoin exposure directly to American investors’ brokerage accounts for the first time.”
Primarily, DIME invests its assets towards assets that generate exposure to constituents of the CoinShares-Compass Altcoins Index. This equally weighted index looks to track the performance of a selection of altcoins which are native tokens of Layer 1 Digital Asset Protocols. For the uninitiated, Layer 1 Digital Asset Protocols entail central blockchain networks and operations, like data storage and consensus mechanisms. Solana is a good example.
DIME generates exposure to this index by investing in a mix of different exchange-traded products (ETPs) that offer exposure to the cryptocurrencies within this index. Initially, these cryptocurrencies are Solana (SOL), Polkadot (DOT), Cardano (ADA), Cosmos (ATOM), Sei (SEI), Avalanche (AVAX), Sui (SUI), Aptos (APT), Near Protocol (NEAR), and Toncoin (TON). However, the tokens DIME focuses on could change over time.
Altcoins represent a captivating portfolio opportunity for advisors and investors who are willing to bet on long-term innovation in the crypto space. As the crypto market continues to grow and adapt, many of these coins may continue to grow into significantly more attractive products, making now a good time to get in ahead of the game.
Furthermore, DIME allows advisors and investors to build altcoin exposure in a diversified manner. This diversified take can thus help mitigate one’s risk exposure, should one of the altcoins within DIME’s portfolio begin to underperform.
“CoinShares has established credibility with ETF-minded advisors around the globe seeking to learn about cryptocurrency,” said Todd Rosenbluth, Head of Research at VettaFi. “It’s great to see them expand their ETF lineup in the U.S.”
DIME joins CoinShares’ growing lineup of fund products that offer compelling access to a variety of crypto strategies. One of the firm’s larger funds, the CoinShares Bitcoin Mining ETF (WGMI), has over $300 million in assets under management.
