Despite a brutal year for Toncoin (TON) that has erased over half its market value, asset manager CoinShares is deepening its exposure to the Telegram-linked cryptocurrency with the launch of a specialized staking ETP.
The launch of CoinShares Physical Staked Toncoin (CTON) on the SIX Swiss Exchange marks the firm’s second product to include TON in a matter of weeks, following the debut of its Altcoins ETF (DIME) in early October. The new ETP offers a 2% staking yield, allowing investors to earn rewards automatically.
This bullish stance from a major European crypto firm stands in stark contrast to TON’s market performance. According to CoinGecko, Toncoin’s market capitalization has plunged to $5.7 billion, down 59% year-to-date.
In a statement, CoinShares justified its confidence by citing the “technical performance” of the TON blockchain and the “existing market reach” of Telegram’s 900-million-strong user base. The ETP launch was facilitated by a merger between CoinShares International and blank-check company Vine Hill Capital Investment Corp.
