Despite a 59% decline, CoinShares introduces a staking ETP for TON

CoinShares, recognized as one of the leading digital asset managers in Europe, has introduced a new exchange-traded product (ETP) that tracks

(TON), the digital currency associated with The Open Network, a blockchain project connected to Telegram. The product, named CoinShares Physical Staked Toncoin (CTON), started trading on Switzerland’s SIX Swiss Exchange on October 28. It allows investors to gain direct access to tokens and benefit from an automatic annual staking yield of 2%, as detailed in a . The launch comes at a time when TON’s market value has dropped below $6 billion, marking a 59% decrease since the start of the year, according to a .

This physically backed ETP, which is priced in U.S. dollars, is designed to connect institutional investors with the robust performance of TON’s blockchain. The network, capable of processing over 100,000 transactions per second and integrated with Telegram’s user base of more than 900 million, has seen its token price fall to $2.30, placing it as the 35th largest cryptocurrency by market capitalization, as reported by

. CoinShares highlighted that the product’s lack of management fees and its yield-focused structure make it an appealing choice for European investors interested in Telegram’s digital ecosystem.

CoinShares’ entry into the TON market follows its recent merger with Vine Hill Capital Investment Corp., a special-purpose acquisition company (SPAC), aimed at broadening its range of exchange-traded products. The company also features TON in its U.S.-listed Altcoins ETF (DIME), which tracks a portfolio of alternative cryptocurrencies, according to FinanceFeeds. This approach mirrors a wider industry movement, as crypto ETP providers such as FalconX and 21shares have expanded internationally through mergers and acquisitions.

The debut of this product aligns with a rising interest from institutions in blockchain-based yield solutions. For instance, Solana Company (NASDAQ: HSDT) recently announced a 7.03% annualized staking return on its SOL assets, surpassing benchmarks by 36 basis points, as noted in a

. In a similar vein, BitMine, a prominent treasury manager, has grown its ETH holdings to 2.15 million tokens and significantly increased its investment in Eightco, which is linked to Worldcoin, by ten times, according to a . These trends highlight the evolution of institutional crypto strategies, with a growing emphasis on generating yield and diversifying assets.

The Toncoin ETP from CoinShares also signals a broader regulatory movement to bring crypto assets into mainstream finance. CoinShares, which is regulated in Jersey, France, and the United States, presents CTON as a compliant investment option for both professional and individual investors seeking access to Telegram’s blockchain network. At the same time, Telegram has broadened its financial services, with its Wallet in Telegram app now supporting tokenized stocks and ETFs.