CoinShares Launches Toncoin ETP Amid Market Developments

According to Cointelegraph, CoinShares, a prominent European crypto asset management firm, has introduced a new investment product linked to Toncoin, the native cryptocurrency of The Open Network (TON). This move follows CoinShares International's merger with Vine Hill Capital Investment Corp., resulting in the launch of an exchange-traded product (ETP) for Toncoin. The product, named CoinShares Physical Staked Toncoin, began trading on Switzerland's primary stock exchange, SIX, under the ticker CTON. Toncoin, closely associated with the Telegram messenger, has experienced a notable decline over the past year. Its market capitalization has dropped by 59% year-to-date, reaching $5.7 billion, as reported by CoinGecko. Despite this downturn, CoinShares highlights the blockchain's technical capabilities, boasting over 104,000 transactions per second, combined with Telegram's extensive user base of over 900 million active users. The new ETP aims to leverage these strengths, offering automatic yield generation from network validation rewards with a 2% staking yield. Trades for this product are available in US dollars. This is not CoinShares' first venture into Toncoin-related products. The crypto asset manager has previously included TON in its CoinShares Altcoins ETF (DIME), a US-traded ETP launched in early October. This ETF provides exposure to various altcoins, including Solana (SOL), Polkadot (DOT), Cardano (ADA), and Cosmos (ATOM), among others. The introduction of the Toncoin ETP coincides with developments in the Telegram ecosystem, where Wallet in Telegram, a third-party crypto wallet app, has begun offering tokenized stocks and exchange-traded funds (ETFs) through xStocks. This new offering includes tokenized shares of 50 stocks and ETFs, some of which provide dividends. In response to these announcements, Toncoin's market performance showed a modest increase, rising approximately 5% to $2.30. At the time of publication, Toncoin ranked as the 35th-largest cryptocurrency by market capitalization, according to CoinGecko. These developments reflect ongoing interest and activity in the cryptocurrency market, as companies like CoinShares continue to expand their product offerings and adapt to market trends.