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Altcoins Offer A Crucial Diversification Opportunity


Concerns over macroeconomic uncertainty this year have led to more advisors and investors seeking diversified portfolios. Traditional investors may think of diversification as investing in assets such as international equities or high yield bonds. However, longtime crypto investors know that it can be important to build diversified access to a number of different cryptocurrencies, including altcoins. By doing so, one’s portfolio will not solely be beholden to an asset like bitcoin in order to deliver results. 

Fostering a diversified crypto portfolio is likely far easier than advisors and investors would expect it to be. The key to understanding crypto diversification is breaking down the differences between Bitcoin and other coins on the market, such as Solana. 

Many experienced traders have heard Bitcoin be referred to as “digital gold” by this point. This is due to the cryptocurrency’s distinct similarities to gold, such as its scarcity and how it can function as a store of value.

Meanwhile, altcoins can bring something distinctly different to an investor’s portfolio. They are used by the crypto community to help pioneer new innovative products in the field. These coins tend to compete with one another to dominate the market and lead the way in innovation. 

This is why pairing bitcoin exposure with altcoins can make so much sense, beyond simple diversification. Bitcoin works on its own as a store of value play, while altcoins can act as a bet on long-term innovation in the crypto space. 

DIME Provides Efficient Access to Altcoin Performance

Gaining exposure to altcoins may seem like a daunting process for some, but CoinShares has made it easier than ever to do so. Recently, CoinShares released the CoinShares Altcoins ETF (DIME), an active fund that offers distinct altcoin exposure. 

Crucially, DIME goes about building its altcoin portfolio in a very diversified manner. The fund invests in a selection of exchange traded products (ETPs) that provide exposure to the assets within the CoinShares-Compass Altcoins Index. 

This index contains a number of Layer 1 Altcoins, including Solana, Avalanche, and Aptos. With the index holding ten altcoins in it as of October 8th, 2025, DIME can provide highly diversified access to the world of altcoins through a single ETF wrapper. 

DIME’s approach can be highly beneficial for those looking to approach altcoins as a diversifier. With so many altcoins within the fund’s index, DIME isn’t necessarily beholden to one single cryptocurrency in order to see results. Likewise, if one coin underperforms, the remainder of DIME’s balanced portfolio can help balance out any potential losses. 

For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.



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