Hope isn’t actionable investing advice. Altcoin investors know as much. There are times when hope is the primary foundation for talk of a new altcoin season.
Cryptocurrency investors wanting to position for an altcoin resurgence may well be rewarded by taking a broad approach and that objective is easy to accomplish thanks to the actively managed CoinShares Altcoins ETF (DIME). Think of DIME as the altcoin equivalent of selecting a broad-based plain vanilla equity ETF over fiddling with individual stocks.
DIME debuted last October as the first ETF dedicated to altcoins. It may be the ideal avenue for investors seeking exposure to credible non-Bitcoin cryptocurrencies. This thesis enhanced by the fact that some experts believe sentiment around some upper echelon altcoins is gradually improving.
DIME May Be Ready for the Spotlight
Even the most dedicated cryptocurrency investors are currently viewing altcoin as “show me” assets. As in show me that momentum is truly building. Some market observers believe inklings to that effect are appearing.
By way of AMB Crypto, Michaël van de Poppe, CIO & Founder of MN Fund, says altcoin sentiment is perking up, indicating a new altcoin season is possible. Obviously, that could potentially stoke upside for DIME.
“Poppe underlined that there won’t be a ‘full-blown altcoin run,’ but many altcoins that have been in a prolonged bear market for about 18 months now will witness a profitable rally in the short term,” reported AMB Crypto.
Assuming that outlook is validated, it’s possible DIME would benefit. An altcoin resurgence may be led by the segment’s higher quality tokens, including some held by DIME. Many crypto investors haven’t forsaken altcoins. Still, many are out of patience when it comes to dubious fly-by-night tokens that have little or no utility. That actually works in favor of DIME because the ETF focuses on quality assets.
DIME’s methodology is important because by some estimates, nearly a third of the total altcoins currently labor at or close to all-time lows. Looked at differently, market participants that opt for individual tokens as an expression of bullish sentiment on a new altcoin season stand a fair chance of buying some following knives – a bad thing. On the other hand, DIME can help investors avoid that painful scenario and that’s a good thing.
For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.
