CoinShares Launches Toncoin ETP on Swiss Exchange Amid 60% YTD Decline

CoinShares has launched the Physical Staked Toncoin ETP, providing investors with exposure to Telegram-linked Toncoin despite its 59% year-to-date decline to a $5.7 billion market cap. Traded on Switzerland’s SIX exchange under ticker CTON, it offers a 2% staking yield from network rewards.

• CoinShares Physical Staked Toncoin ETP begins trading on SIX Swiss Exchange.

• The product merges with Vine Hill Capital to deliver Toncoin exposure via a regulated ETP structure.

• Toncoin, native to The Open Network blockchain, processes over 104,000 transactions per second, backed by Telegram’s 900 million users; market cap stands at $5.7 billion per CoinGecko data.

CoinShares Toncoin ETP launch offers staked exposure to TON amid market dips. Discover 2% yields, Telegram integration, and investment details for crypto portfolios today.

What is the CoinShares Physical Staked Toncoin ETP?

CoinShares Physical Staked Toncoin ETP is a new exchange-traded product launched by European crypto asset manager CoinShares, providing direct exposure to Toncoin, the native cryptocurrency of The Open Network (TON) blockchain. This ETP, which began trading on Switzerland’s SIX Swiss Exchange under the ticker CTON, merges CoinShares International with blank-check company Vine Hill Capital Investment Corp. to offer investors a regulated way to access TON’s staking rewards, yielding approximately 2% from network validation, all while trading in US dollars.

How does the CoinShares Toncoin ETP integrate with Telegram’s ecosystem?

The CoinShares Physical Staked Toncoin ETP taps into the robust ecosystem of The Open Network, a blockchain platform deeply integrated with Telegram, which boasts over 900 million active users worldwide. This integration allows TON to leverage Telegram’s vast user base for seamless adoption in decentralized applications, payments, and more, with the blockchain capable of handling over 104,000 transactions per second for high-performance operations. According to CoinShares’ announcement, this combination of technical prowess and market reach positions TON as a compelling asset, even as its market capitalization has declined 59% year-to-date to $5.7 billion, based on data from CoinGecko as of the launch date.

The ETP’s structure ensures automatic yield generation through staking, where holders benefit from TON network rewards without needing to manage wallets or validators themselves. CoinShares emphasized in their statement, “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.” This expert insight highlights the strategic value of the product for institutional and retail investors seeking diversified crypto exposure.

Furthermore, the launch aligns with broader trends in the crypto market, where regulated products like ETPs are gaining traction for providing secure, compliant access to volatile assets. Historical data from similar launches, such as CoinShares’ previous ETPs, shows that staking-integrated products often attract steady inflows, with average yields stabilizing around 2-5% depending on network participation rates, per industry reports from sources like CoinShares’ own analytics.

Data on the CoinShares Physical Staked Toncoin as of Wednesday. Source: CoinShares

This is not CoinShares’ first foray into TON exposure. The asset manager already includes Toncoin in its CoinShares Altcoins ETF, traded in the US under ticker DIME, which launched in early October and encompasses a basket of altcoins like Solana (SOL), Polkadot (DOT), Cardano (ADA), and Cosmos (ATOM). This multi-asset approach allows investors to mitigate single-token risks while capturing growth in the altcoin sector.

The timing of the CTON launch coincides with developments in Telegram’s crypto features. Wallet in Telegram, a third-party application integrated with the messenger, recently introduced tokenized stocks and exchange-traded funds from xStocks, expanding to 50 offerings, some with dividend payouts. This move underscores Telegram’s push into tokenized real-world assets, potentially boosting TON’s utility and demand within the platform.

Source: Wallet in Telegram

Market reaction to the ETP launch was positive but measured, with Toncoin’s price rising about 5% to $2.30 on the trading debut day. As of publication, TON ranks as the 35th-largest cryptocurrency by market capitalization, according to CoinGecko, reflecting its established position despite the year-to-date downturn.

From an investment perspective, the ETP addresses key concerns in crypto asset management, such as liquidity and regulatory compliance. SIX Swiss Exchange, one of Europe’s premier venues for digital assets, provides a transparent trading environment with high standards, appealing to European investors under MiFID II regulations. CoinShares, with over a decade of experience managing billions in assets, brings credibility to the product, as evidenced by its track record of launching successful ETPs tracking major cryptocurrencies like Bitcoin and Ethereum.

Staking yields in the TON network are generated through proof-of-stake mechanisms, where validators secure the blockchain and earn rewards distributed proportionally. The 2% yield cited by CoinShares is a conservative estimate based on current network dynamics, but it could fluctuate with participation levels and protocol upgrades. Experts from the crypto asset management space, including analysts at firms like CoinShares, note that such yields provide a passive income stream superior to traditional fixed-income products in low-interest environments.

Frequently Asked Questions

What is the current market performance of Toncoin in 2025?

Toncoin has experienced a 59% decline year-to-date in 2025, reducing its market capitalization to $5.7 billion as reported by CoinGecko. Despite this, integrations with Telegram continue to drive utility, positioning TON for potential recovery through increased adoption in messaging-based DeFi and payments.

How can investors access staking yields through the CoinShares Toncoin ETP?

Investors can buy shares of the CoinShares Physical Staked Toncoin ETP on the SIX Swiss Exchange using the ticker CTON, with trades settled in US dollars. The ETP automatically stakes the underlying Toncoin holdings to generate a 2% yield from network rewards, simplifying the process for passive exposure without direct wallet management.

Is Toncoin ETP suitable for US investors?

While the CTON ETP trades on the European SIX exchange, US investors can gain indirect exposure through CoinShares’ Altcoins ETF (DIME), which includes TON alongside other altcoins. This provides a diversified entry point compliant with US regulations, though direct CTON access may require international brokerage accounts.

What role does Telegram play in Toncoin’s ecosystem?

Telegram serves as the primary gateway for Toncoin adoption, with over 900 million users enabling mini-apps and wallets like Wallet in Telegram to facilitate TON transactions. Recent additions of tokenized stocks enhance TON’s use cases, blending social messaging with blockchain finance for everyday accessibility.

Key Takeaways

• CoinShares expands TON access: The Physical Staked Toncoin ETP offers regulated exposure on SIX, merging innovation with compliance for European markets.
• 2% staking yield advantage: Automatic rewards from TON network validation provide steady returns, leveraging the blockchain’s high throughput of 104,000 TPS.
• Telegram integration drives potential: With 900 million users, TON’s ecosystem could see renewed growth, despite current market challenges—consider diversifying portfolios with such ETPs.

Conclusion

The launch of the CoinShares Physical Staked Toncoin ETP marks a significant step in bridging Telegram’s massive user base with institutional-grade crypto investments, even as Toncoin navigates a challenging 2025 with its Toncoin ETP structure offering 2% staking yields. As blockchain platforms like TON evolve, this product exemplifies how regulated vehicles can democratize access to high-performance assets. Investors are encouraged to evaluate such opportunities for long-term portfolio diversification, monitoring Telegram ecosystem developments for future upside potential.