21Shares, a leading issuer of cryptocurrency exchange-traded products (ETPs), is set to launch a staking ETP based on the cryptocurrency Toncoin (TON). The Toncoin Staking ETP is a fully backed product that tracks the performance of TON and reinvests staking yields for improved performance. Trading of the product will commence on the Swiss SIX Exchange on March 27 under the ticker TONN.
The new crypto investment product aims to provide investors with an opportunity to earn TON staking rewards without the hassle of setting up and managing a staking node. The TON Blockchain utilizes a proof-of-stake (PoS) model, allowing validators to earn rewards by staking. While users typically need at least 600,000 TON ($2.9 million) to qualify for staking, they have the option to pool their assets together.
With the Toncoin Staking ETP from 21Shares, investors can enjoy the benefits of staking Toncoin without dealing with the technical complexities associated with TON staking. The product offers the convenience and liquidity of traditional financial markets.
According to Ophelia Snyder, co-founder and president of 21Shares, TONN is the first and only TON ETP ever launched. Snyder stated that the decision to launch a staking ETP instead of a spot one was due to the superior benefits of staking ETPs, as the staking yield directly benefits ETP holders.
At launch, the Toncoin Staking ETP holds $25 million, equivalent to approximately 5 million TON. The ETP’s net asset value stands at $20.
The TONN ETP provides a regulated and secure way for investors to access The Open Network, a blockchain network used by popular crypto-friendly messengers like Telegram. The Open Network aims to create a comprehensive ecosystem of user-facing services, offering decentralized storage, VPN, payment solutions, and a native wallet within the messaging app.
The Open Network, originally known as “Telegram Open Network,” was developed by Pavel Durov’s Telegram in 2019. Although Telegram had to reduce its involvement in the project in May 2020 due to a legal battle with the United States Securities and Exchange Commission, it continued to actively promote the open-sourced TON technology and Toncoin.
TON is among the few coins supported natively in Telegram’s custodial cryptocurrency wallet, known as “Wallet.”
TON has experienced significant growth recently, with a 134% surge in the past 30 days. Currently trading at $4.97, the coin has seen a slight decline of about 4.5% in the past 24 hours, according to CoinGecko.