Institutional Investors Earn 1.4% Yield via UK’s First Bitcoin Staking ETP
Valour Digital Securities, a subsidiary of DeFi TechnologiesDEFT--, has launched the first BitcoinBTC-- Staking Exchange-Traded Product (ETP) on the London Stock Exchange (LSE), marking a significant step in integrating cryptocurrency staking into traditional finance markets. The product, named 1Valour Bitcoin Physical Staking (1VBS), offers professional and institutional investors exposure to Bitcoin’s price movements while generating an annual yield of 1.4%[1]. Each share is backed 1:1 by Bitcoin held in institutional-grade cold storage, with the yield added to the net asset value (NAV) daily[2]. The ETP is available in both GBP and EUR denominations, broadening its appeal across European markets[3].
The product’s structure leverages non-custodial staking technology provided by Core DAO, enabling Bitcoin to be locked on the Bitcoin network via CheckLockTimeVerify timelocks for a minimum of 24 hours[4]. This approach generates rewards from Core’s block rewards and transaction fees, contributing to the 1.4% yield. The staking process is managed internally, eliminating the need for investors to handle cryptocurrency wallets or staking protocols directly[5]. The ETP also incorporates multi-party computation (MPC) technology for enhanced security, ensuring Bitcoin remains in cold storage without transferring custody to external entities[6].
Access to the 1VBS ETP is currently restricted to professional and institutional investors under UK regulations[1]. Retail investors will gain access to crypto-linked products on recognized exchanges, including the LSE, starting October 8, 2025, following regulatory adjustments by the Financial Conduct Authority (FCA)[7]. The launch aligns with the UK’s broader efforts to modernize its crypto framework, which has previously banned retail access to crypto ETNs since 2021[9]. The ETP’s daily NAV disclosures, Bitcoin entitlements, and indicative prices aim to provide transparency for investors tracking their holdings[8].
The product builds on Valour’s existing portfolio of over 85 ETPs listed on European exchanges, including platforms in Germany, Switzerland, and the Netherlands[10]. This expansion into the UK market positions Valour as a leader in regulated digital assetDAAQ-- solutions, bridging traditional finance with decentralized protocols. The ETP’s yield generation model mirrors similar strategies on French exchanges, where Valour’s Bitcoin ETP delegates assets to Core Chain, an EVM-compatible layer-1 blockchain utilizing Bitcoin’s proof-of-work consensus[9].
Market reactions to the launch have been positive. DeFi Technologies’ stock rose 5% on Nasdaq following the announcement, reflecting growing institutional interest in regulated crypto investment vehicles[9]. Analysts note that Bitcoin itself does not natively support staking, but the ETP’s structure allows investors to earn yields through blockchain networks and layer-2 solutions like StacksSTX-- or Babylon[10]. The product’s success could catalyze further innovation in the UK’s crypto ecosystem, particularly as the country seeks to strengthen collaboration with the US on digital asset regulation[9].
The launch underscores the evolving regulatory landscape for crypto assets in Europe. While the UK has historically maintained a cautious stance, recent developments signal a shift toward accommodating institutional demand for yield-bearing digital assets. The ETP’s compliance with LSE listing requirements and FCA oversight provides a framework for broader adoption, potentially paving the way for similar products in other jurisdictions[11]. As Bitcoin’s price volatility remains a concern, the ETP’s regulated structure offers a layer of risk mitigation for investors seeking exposure to the cryptocurrency market[6].
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