The cryptocurrency market continues to evolve, attracting institutional and retail investors seeking exposure to digital assets through regulated, transparent, and secure financial instruments. Among the most compelling offerings in this space is the CoinShares Physical Top 10 Crypto Market ETP (Ticker: CTEN), a physically backed exchange traded product designed to deliver diversified exposure to the largest digital assets by market capitalization.
With its unique structure, zero management fee, and quarterly rebalancing mechanism, CTEN stands out as a strategic investment vehicle for those aiming to gain broad market exposure while mitigating concentration risk.
Investment Objective and Structure
The CoinShares Physical Top 10 Crypto Market ETP tracks the CoinShares-Compass Top 10 Crypto Market Index (Ticker: COINTEN), which measures the performance of the ten largest cryptocurrencies by market cap. The index applies a market-cap weighting methodology with a crucial safeguard: no single asset can exceed 35% weight, ensuring enhanced diversification.
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This ETP is structured as a debt security (ETP), fully backed by physical holdings of the underlying digital assets. These assets are safeguarded by Komainu (Jersey) Limited, a regulated custodian, providing investors with confidence in security and transparency.
Key Features and Benefits
Zero Management Fee – A Competitive Advantage
One of the most attractive aspects of CTEN is its 0.0% annual management fee, effective until further notice. This reduction significantly lowers the cost barrier for investors, making it one of the most cost-efficient ways to access a diversified basket of top cryptocurrencies.
Physically Backed with Full Transparency
Each CTEN security represents direct ownership in the underlying digital assets. The physical replication method ensures that every unit is 100% backed by actual crypto holdings—no synthetic derivatives or unsecured promises.
UCITS Eligibility and Regulatory Compliance
CTEN is UCITS eligible in multiple jurisdictions, enhancing its appeal to institutional investors and regulated funds. While not fully UCITS compliant, its eligibility status allows for broader integration into traditional investment portfolios across Europe.
Staking Enabled, Securities Lending Excluded
Unlike many traditional ETPs, CTEN allows staking of underlying assets, potentially generating additional yield. However, securities lending is not permitted, prioritizing capital preservation and reducing counterparty risk.
Portfolio Allocation: Broad Exposure Across Major Cryptocurrencies
CTEN offers instant diversification across the top digital assets:
- Bitcoin (BTC): 35.00%
- Ethereum (ETH): 35.00%
- Solana (SOL): 8.61%
- XRP: 6.74%
- Cardano (ADA): 4.20%
- Avalanche (AVAX): 3.03%
- Polkadot (DOT): 2.12%
- Tron (TRX): 1.92%
- Chainlink (LINK): 1.71%
- Polygon (MATIC): 1.69%
This allocation reflects a balanced approach—giving substantial weight to market leaders while incorporating high-potential mid-cap assets.
Index Methodology and Rebalancing
The CoinShares-Compass Top 10 Crypto Market Index is maintained by Compass Financial Technologies and rebalanced quarterly. This regular review ensures the index adapts to market changes, automatically including emerging leaders and adjusting weights to maintain balance.
Rebalancing helps capture value creation from new entrants and prevents outdated concentrations, aligning investor returns with current market dynamics.
Performance Overview
Historical and simulated performance data shows how CTEN has performed against key benchmarks:
| Index | 1M Return | 6M Return | YTD Return | Since Inception |
|---|---|---|---|---|
| COINTEN | 8.12% | 10.39% | 20.78% | 85.64% |
| Bitcoin (BTC) | 7.80% | 37.14% | 49.46% | 132.61% |
| S&P 500 | 2.02% | 27.20% | 20.81% | 44.88% |
Note: Past performance is not indicative of future results. Returns do not include brokerage fees or taxes.
While Bitcoin has outperformed over the medium term, CTEN’s diversified structure has delivered competitive returns with reduced volatility compared to single-asset exposure.
👉 Explore how diversified crypto exposure can stabilize your portfolio during market shifts.
Trading Information and Availability
CTEN is listed on Börse Xetra in EUR, with the Bloomberg code CTEN GY and SEDOL BPRDNL8. It launched on 27 March 2023, providing European investors easy access via regulated exchanges.
The product is registered for sale in multiple European countries, including:
- Austria
- Belgium
- Finland
- France
- Germany
- Italy
- Netherlands
- Norway
- Spain
- Sweden
This wide availability supports cross-border investment within the EU professional investor framework.
Frequently Asked Questions (FAQ)
What is a physically backed crypto ETP?
A physically backed crypto ETP holds actual digital assets in custody, rather than using derivatives or synthetic replication. This ensures direct exposure and reduces counterparty risk.
Why does CTEN cap single-asset weight at 35%?
The 35% cap prevents over-concentration in any one cryptocurrency—especially Bitcoin or Ethereum—enhancing portfolio diversification and reducing volatility during market swings.
Is CTEN suitable for retail investors?
In certain jurisdictions like the UK and Switzerland, CTEN is intended for professional investors and eligible counterparties only. Retail access may be restricted due to regulatory classifications of crypto products as complex and high-risk.
How does staking work within CTEN?
Staking allows the ETP to earn rewards by participating in blockchain validation processes. These rewards can enhance overall returns, though they come with risks such as slashing penalties for validator errors.
Can I trade CTEN like a stock?
Yes. CTEN trades on regulated exchanges like Xetra, allowing investors to buy and sell shares through standard brokerage accounts during market hours—just like equities.
What are the main risks of investing in CTEN?
Key risks include:
- Capital loss due to crypto price volatility
- Liquidity risk from staked assets
- Cybersecurity threats
- Regulatory uncertainty
- Bid/offer spreads differing from underlying asset prices
Why Choose CTEN?
- ✅ Diversified exposure to top 10 cryptocurrencies
- ✅ Zero management fees – cost-effective access
- ✅ Physically backed by real assets under regulation
- ✅ Quarterly rebalancing for dynamic portfolio alignment
- ✅ Staking-enabled for potential yield generation
- ✅ Listed on major European exchanges
👉 See how zero-fee crypto ETPs are reshaping investment strategies in 2025.
Final Thoughts
The CoinShares Physical Top 10 Crypto Market ETP (CTEN) offers a compelling solution for investors seeking regulated, diversified, and low-cost exposure to the digital asset ecosystem. By combining physical backing, smart weighting rules, and zero fees, it bridges the gap between traditional finance and the evolving crypto economy.
As digital assets become increasingly integrated into global portfolios, products like CTEN will play a pivotal role in enabling secure, transparent, and efficient access.
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