With Altcoins, Selectivity Is Paramount

Core Insights - The cryptocurrency market, particularly altcoins, has not consistently delivered on its promise, highlighting the need for selective investment strategies [1] - The CoinShares Altcoins ETF (DIME) is positioned as a potentially valuable tool for investors in the altcoin space, being actively managed and focused on higher market capitalization altcoins [1] - The Federal Reserve's shift away from quantitative tightening (QT) could positively influence altcoin performance, as historical trends suggest altcoins thrive during periods without QT [1] Group 1 - DIME is a new actively managed ETF that targets higher market capitalization altcoins, which are less speculative compared to the broader altcoin universe [1] - Historical data indicates that during periods of no QT, altcoins experienced significant uptrends, with notable growth observed from 2014 to 2017 and 2019 to 2022 [1] - The Fed's current monetary policy, including two rate cuts in 2025 and expectations for another, may create a favorable environment for altcoin investments [1] Group 2 - Research by analyst Matthew Hyland suggests that the absence of QT has historically allowed altcoins to sustain uptrends for 42 months (2014-2017) and 29 months (2019-2022) [1] - The Fed's liquidity policy is identified as a core influence on the performance of crypto risk assets, indicating that declining rates could enhance the case for altcoin exposure [1] - The article emphasizes that while the end of rate hiking cycles does not guarantee immediate looser monetary policy, the current scenario of declining rates could be beneficial for altcoin investors [1]