Bitcoin Staking Innovation and Institutional Adoption: How Core DAO's ETP is Reshaping Institutional Access to Bitcoin Yield
The launch of the 1Valour BitcoinBTC-- Physical Staking ETP (1VBS) on the London Stock Exchange in September 2025 marks a pivotal moment in the convergence of traditional finance and decentralized infrastructure. Powered by Core DAO's non-custodial staking technology, this product offers institutional investors a regulated, yield-generating alternative to traditional Bitcoin holdings while addressing long-standing concerns about custody, liquidity, and regulatory compliance. As the first physically backed Bitcoin staking ETP to list on a major global exchange, 1VBS is redefining how institutions access Bitcoin's utility, signaling a broader shift toward institutional-grade crypto innovation.
The Mechanics of Core DAO's Staking ETP
At its core, the 1VBS ETP leverages Bitcoin's native CheckLockTimeVerify (CLTV) timelock mechanism to enable staking without transferring custody of assets to a third party [1]. This non-custodial approach ensures that Bitcoin remains under the control of Valour, the ETP issuer, which stores the assets in institutional-grade cold wallets secured by multi-party computation (MPC) technology [3]. By delegating staking rights to Core Chain validators—without relinquishing ownership—investors earn a fixed annual yield of 1.4% while retaining full control over their Bitcoin [2].
The innovation extends beyond basic staking. Core DAO's Dual Staking model allows investors to combine Bitcoin with CORE tokens, the native governance token of the Core ecosystem, to amplify yields. According to Reflexivity Research, this mechanism can boost returns by up to 25–50 times compared to solo Bitcoin staking, depending on market conditions and staking ratios [6]. For example, Valour's yield-bearing BTC ETP has already demonstrated an annual percentage yield (APY) of 5.65% by leveraging Core's staking infrastructure [5]. These dynamics are further stabilized by Core's dynamic adjustment algorithms, which balance staking requirements to maintain long-term yield sustainability [1].
Institutional Adoption: Yield, Liquidity, and Regulatory Clarity
Institutional investors have historically been cautious about Bitcoin due to its volatility, custody risks, and lack of yield-generating mechanisms. The 1VBS ETP addresses these pain points by offering a regulated product that aligns with traditional financial frameworks. As stated by a report from Core DAO, the ETP's structure eliminates exposure to centralized lending risks while enabling institutions to earn yield without sacrificing liquidity [6]. This is achieved through liquid staked Bitcoin (lstBTC), a derivative token that represents staked Bitcoin on Core Chain. lstBTC can be used as collateral for trading or borrowing, effectively transforming staked assets into working capital [4].
The UK's regulatory environment has played a critical role in accelerating adoption. Unlike the U.S., where digital asset regulations remain fragmented, the London Stock Exchange's approval of 1VBS underscores the UK's proactive stance on crypto innovation. Data from Bloomberg indicates that London is emerging as a leading European hub for institutional crypto adoption, with the city's financial infrastructure now competing directly with Zurich and Frankfurt [5]. This regulatory clarity has attracted a wave of institutional capital, with professional investors gaining access to 1VBS in September 2025 and retail investors expected to follow in October [3].
Implications for the Future of Bitcoin Staking
The success of Core DAO's ETP has broader implications for the crypto ecosystem. First, it validates the viability of non-custodial staking as a scalable solution for institutional investors. By using Bitcoin's native timelock features, Core DAO has demonstrated that decentralized infrastructure can deliver institutional-grade security and transparency without relying on centralized custodians. Second, the ETP's yield model sets a precedent for future products. As noted by Reflexivity Research, the potential for a staking ETF—similar to the 2024 spot Bitcoin ETFs—has gained traction, with 1VBS serving as a blueprint for regulated, yield-bearing crypto products [4].
Finally, the ETP highlights the growing importance of liquid staking derivatives. By enabling lstBTC to circulate as collateral, Core DAO is unlocking new use cases for Bitcoin, such as margin trading and lending, while maintaining the asset's scarcity and security. This innovation mirrors the rise of Ethereum's liquid staking tokens (e.g., stETH) but applies it to Bitcoin's more conservative design, potentially expanding its utility in traditional financial markets.
Conclusion
Core DAO's 1VBS ETP represents a paradigm shift in institutional Bitcoin adoption. By combining non-custodial staking, regulatory compliance, and yield amplification through Dual Staking, the product addresses the core challenges that have historically limited institutional participation in crypto. As London solidifies its position as a crypto-friendly financial hub, the ETP's success is likely to spur further innovation, including staking ETFs and cross-chain yield strategies. For investors, this marks the beginning of a new era where Bitcoin is no longer just a store of value but a dynamic, yield-generating asset within traditional portfolios.
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