Spend enough time following the cryptocurrency universe and any investor is apt to come away thinking it’s always “alts season.” Indeed, there’s no shortage of clarion calls proclaiming now is the time for digital currencies that aren’t bitcoin or stable coins to deliver big gains. Over the course of 2025, altcoins have occasionally rallied. Broadly speaking, though, the space hasn’t delivered as promise. That tale of disappointment underscores the need for investors to be selective in this realm, an objective made easier with the CoinShares Altcoins ETF (DIME).
Now about a month old, DIME could be a crypto investor’s best friend in the altcoin arena. The new ETF is actively managed. That’s potentially a plus in a market segment that arguably lends itself to that management style. Its roster is comprised of higher market capitalization altcoins. The latter point is important because the altcoin universe is populated by thousands of tokens, many of which are highly speculative.
Although it’s a rookie ETF, DIME could prove relevant to cryptocurrency investors here and now. The Federal Reserve has clearly moved away from quantitative tightening (QT). Two 2025 rate cuts and expectations of another this month prove as much. That could prove important to DIME investors.
“The Fed’s monetary policy increasingly influences the crypto market. Historically, when the Fed was not engaged in QT, altcoins showed notable strength against Bitcoin, sparking multi-year rallies and altering market dynamics,” reported BeInCrypto.
Citing research from analyst Matthew Hyland, the publication noted that owning altcoins was rewarding during prior periods in which QT was off the table. In other words, if history repeats and the Fed obliges, DIME could be a crypto ETF to consider now and over the course of next year.
“Hyland’s research spotlights the periods 2014-2017 and 2019-2022. During these periods, the absence of QT allowed altcoins to sustain uptrends for 42 and 29 months, respectively,” according to BeInCrypto.
In other words, the absence of tighter monetary policy can benefit altcoins. However, simply because rate hiking cycles end doesn’t mean new eras of looser monetary policy immediately follow. Said differently, declining rates — the scenario playing out today — can be additive to the case for altcoin exposure.
“The Fed’s approach closely mirrors these shifts. From 2014 to 2017, a supportive stance led to strong altcoin growth. Likewise, after QT ended in August 2019, another altcoin rally unfolded and lasted through 2022. These cycles suggest Fed liquidity policy is a core influence on crypto risk assets,” noted BeInCrypto.
