21Shares Launches TONN Staking ETP on SIX Exchange

21Shares is set to launch a staking exchange-traded product (ETP) based on the Toncoin (TON) cryptocurrency. The Toncoin Staking ETP is a physically backed product that tracks the performance of TON and reinvests staking rewards to enhance its performance. The product will be available for trading on the Swiss SIX Exchange starting March 27. The aim of this crypto investment product is to provide investors with an opportunity to earn TON staking rewards without the need to manage a staking node. The TON Blockchain uses a proof-of-stake model for network consensus, allowing validators to earn rewards by staking. The TON Foundation suggests that users typically need at least 600,000 TON to qualify for staking, although they can pool their assets together. With the Toncoin Staking ETP, investors can enjoy the benefits of staking TON without dealing with the technical aspects of staking. They will have the convenience and liquidity of traditional financial markets.

According to Ophelia Snyder, co-founder and president of 21Shares, the Toncoin Staking ETP is the first and only of its kind. She explains that staking ETPs offer superior benefits compared to non-staking ETPs because staking yields directly benefit ETP holders. By launching a staking ETP, investors can receive their income stream in TON, avoiding any increase in costs if the value of TON rises.

The Toncoin Staking ETP holds $25 million worth of assets at launch, which is equivalent to around 5 million TON. It has a net asset value of $20 per ETP. 21Shares highlights that the TONN ETP provides a regulated and secure way for investors to access The Open Network (TON), a blockchain network used by popular crypto-friendly messengers like Telegram. The Open Network aims to create an ecosystem of user-facing services and products, including decentralized storage, VPN, payments solutions, and a native wallet within the messaging app.

The Open Network, formerly known as Telegram Open Network, was developed by Pavel Durov. Although Telegram had to cut its involvement in the project following legal battles with the US Securities and Exchange Commission, it continues to actively participate in promoting TON technology and Toncoin. TON is one of the few coins natively supported in the custodial cryptocurrency wallet on Telegram, called “Wallet.”

Recent cryptocurrency market rallies have also benefited TON, which has seen a surge of 134% in the past 30 days. Currently trading at $4.97, TON has experienced a slight decrease of about 4.5% in the past 24 hours, as reported by CoinGecko.