CoinShares, a major crypto asset management company headquartered in Europe, has launched a new investment product offering exposure to Telegram-linked Toncoin.
CoinShares International announced a merger with blank-check company Vine Hill Capital Investment Corp. to launch an exchange-traded product (ETP) on Toncoin (TON).
The new product, CoinShares Physical Staked Toncoin, started trading on Switzerland’s primary stock exchange SIX under the ticker CTON on Tuesday.
Toncoin is the native crypto asset of The Open Network (TON), a blockchain platform closely integrated with the Telegram messenger. Over the past year, TON has seen a significant decline, with its market capitalization falling 59% year-to-date to $5.7 billion at the time of publication, according to CoinGecko.
2% staking yield
“With Telegram’s 900+ million active users and TON’s high-performance capabilities of over 104,000 transactions per second, the blockchain combines technical performance with existing market reach,” CoinShares said in a statement announcing the CTON launch.
The new ETP will offer automatic yield generation from network validation rewards, featuring a 2% staking yield, with trades available in the US dollar, it said.
CoinShares’ Toncoin ETP product in Europe isn’t the first time for the crypto asset manager to include TON in its crypto investment products.
TON is also part of the CoinShares Altcoins ETF (DIME), a US-traded ETP that launched in early October, offering exposure to multiple altcoins, including Solana (SOL), Polkadot (DOT), Cardano (ADA), Cosmos (ATOM) and others.
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The news came amid Wallet in Telegram, a third-party crypto wallet app on Telegram, rolling out tokenized stocks and exchange-traded funds (ETFs) by xStocks.
According to an announcement on Monday, Wallet in Telegram has started offering tokenized shares of 50 stocks and ETFs, with some of them offering dividends.
Toncoin reacted modestly to the news, rising about 5% to $2.30 on Tuesday. At the time of publication, the token ranked as the 35th-largest cryptocurrency by market capitalization, according to CoinGecko.
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