Despite 59% Drop, CoinShares Launches Staking ETP for TON

CoinShares, one of Europe's largest digital asset managers, has launched an exchange-traded product (ETP) tied to Toncoin (TON), the cryptocurrency linked to the Telegram-associated blockchain The Open Network. The new product, CoinShares Physical Staked Toncoin (CTON), began trading on Switzerland's SIX Swiss Exchange on October 28, offering investors direct exposure to TON tokens and automatic staking rewards of 2% annually, according to a CoinShares release. This move comes as TON's market capitalization has fallen below $6 billion, a 59% decline year-to-date, according to a TradingView report.

The ETP, which is physically backed and denominated in U.S. dollars, aims to bridge institutional capital with the high-performance capabilities of TON's blockchain. The network, which supports over 100,000 transactions per second and integrates with Telegram's 900+ million active users, has seen its token price dip to $2.30, ranking it as the 35th-largest cryptocurrency by market cap, according to a FinanceFeeds report. CoinShares emphasized that the product's zero management fees and yield-generating structure make it a competitive offering for European investors seeking exposure to Telegram's ecosystem.

CoinShares' foray into TON follows its recent merger with Vine Hill Capital Investment Corp., a special-purpose acquisition company (SPAC), to expand its exchange-traded offerings. The firm also includes TON in its U.S.-listed Altcoins ETF (DIME), which tracks a basket of alternative cryptocurrencies, according to FinanceFeeds. This strategy aligns with broader industry trends, as crypto ETP providers like FalconX and 21shares have pursued transatlantic expansion through mergers and acquisitions.

The launch coincides with growing institutional interest in blockchain-based yield mechanisms. For example, Solana Company (NASDAQ: HSDT) recently reported a 7.03% annualized staking yield on its SOL holdings, outperforming benchmarks by 36 basis points in a GlobeNewswire release. Similarly, BitMine, a major Ethereum treasury firm, has expanded its ETH reserves to 2.15 million tokens while also increasing its stake in Worldcoin-linked Eightco by tenfold, according to a CoinDesk report. These developments underscore the maturation of institutional crypto strategies, where yield generation and asset diversification are becoming central themes.

CoinShares' Toncoin ETP also reflects the broader regulatory push to integrate crypto assets into traditional finance. The firm, regulated in Jersey, France, and the U.S., positions CTON as a compliant vehicle for both institutional and retail investors to access Telegram's blockchain ecosystem. Meanwhile, Telegram itself has expanded its financial offerings, with its Wallet in Telegram app now providing tokenized stocks and ETFs.