TLDR
- DeFi Technologies subsidiary Valour launches first Bitcoin staking ETP on London Stock Exchange
- Professional investors can access 1.4% annual yield backed by physical Bitcoin in cold storage
- Product available in GBP and EUR ahead of UK retail crypto access on October 8
- DeFi Technologies stock gained 5% following the announcement
- Move signals UK’s growing embrace of regulated crypto investment products
Bitcoin investment reached a new milestone as DeFi Technologies subsidiary Valour Digital Securities Limited launched the world’s first physically-backed Bitcoin staking exchange-traded product on the London Stock Exchange. The groundbreaking “1Valour Bitcoin Physical Staking” ETP offers professional investors regulated exposure to Bitcoin with a competitive 1.4% annual yield.
The innovative product is backed one-to-one with physical Bitcoin held in institutional-grade cold storage. Security features include multiparty computation technology to protect underlying assets from potential threats.
Professional investors can access the ETP in both GBP and EUR denominations under ISIN code GB00BRBV3124. The product provides full transparency with daily publication of net asset value and Bitcoin entitlements, allowing investors to track holdings and yields in real-time.
The launch comes ahead of the UK’s October 8 deadline to restore retail investor access to crypto exchange-traded notes. This regulatory change will reverse a ban implemented in 2021, opening crypto investment products to a broader investor base.
Bitcoin Yield Generation Methods
Traditional Bitcoin does not generate staking rewards through proof-of-stake mechanisms. Instead, the ETP likely generates yield through alternative methods such as Bitcoin layer-2 networks or delegation protocols.
Valour operates another Bitcoin ETP on a French exchange that delegates coins on Core Chain, an EVM-compatible layer-1 blockchain powered by Bitcoin’s proof-of-work consensus. This approach allows Bitcoin holders to earn returns while maintaining exposure to the original cryptocurrency.
Other yield-generation strategies include centralized lending platforms, Bitcoin layer-2 networks like Stacks and Babylon, or wrapping BTC into tokens for DeFi lending protocols. Cryptocurrency exchange Coinbase launched a similar Bitcoin yield fund in May targeting institutional investors outside the United States.
Market Response and UK Crypto Evolution
DeFi Technologies shares on Nasdaq closed 5% higher following the announcement, reflecting strong investor appetite for regulated crypto investment vehicles. The company now maintains over 85 ETPs across major European exchanges including the UK, Sweden, Germany, Switzerland, and the Netherlands.
Bitcoin and Ethereum ETPs first debuted on the London Stock Exchange in May 2024, establishing the foundation for more complex products like staking ETPs. The UK government is actively increasing cooperation with the United States on digital assets to boost innovation in the cryptocurrency sector.
Trade groups continue pushing for blockchain technology inclusion in UK-US tech collaboration agreements. This regulatory momentum could lead to more favorable treatment for crypto products and services across both jurisdictions.
The Bitcoin staking ETP represents a bridge between traditional finance and cryptocurrency markets, allowing professional investors to access Bitcoin exposure without specialized custody infrastructure or direct cryptocurrency holdings.
