Institutional Investors Now Earn 1.4% Yield on Physical Bitcoin, Risk-Free

DeFi Technologies’ subsidiary, Valour Digital Securities Limited, has launched the world’s first physically-backed Bitcoin Staking Exchange-Traded Product (ETP) on the London Stock Exchange (LSE). The product, known as 1Valour Bitcoin Physical Staking (ISIN: GB00BRBV3124), offers investors regulated exposure to Bitcoin while simultaneously generating an annual staking yield of 1.4%. This innovation marks a significant step in bridging traditional capital markets with decentralized finance, particularly for institutional and professional investors seeking yield-generating opportunities in digital assets.

The ETP is fully collateralized 1:1 by physical Bitcoin, which is securely stored in institutional-grade cold storage using advanced multi-party computation (MPC) technology. This ensures asset safety and transparency, with daily publication of the ETP’s net asset value (NAV), Bitcoin entitlements, and indicative prices. Investors benefit from a straightforward mechanism to access Bitcoin’s price performance while earning passive income without requiring direct cryptocurrency custody or technical expertise. The product is listed in both GBP and EUR on the LSE and Xetra, enhancing its accessibility to European investors.

The launch of this ETP reflects a broader trend in the maturation of digital asset investment structures. According to DeFi Technologies CEO Olivier Roussy Newton, this offering is a “true milestone” in connecting traditional finance with decentralized innovations. The ETP’s yield is generated through non-custodial staking on the Core Chain, a decentralized blockchain protocol that allows Bitcoin holders to earn rewards while retaining full control of their assets. Core Chain’s unique consensus mechanism, known as “Satoshi Plus,” enables Bitcoin miners and stakers to delegate their computational power or assets to validators, thereby enhancing the network’s security and decentralization.

Dr. Manfred Knof, Chairman of Valour, emphasized that the product sets a new standard for institutional investors by offering a secure, transparent, and yield-generating exposure to Bitcoin. Philippe Lucet, Valour’s General Counsel, added that the ETP’s launch on the LSE “opens an entirely new frontier in digital asset investment” and reinforces Valour’s leadership in regulated digital-asset solutions. With over 85 ETPs listed across major European exchanges—including the LSE, Frankfurt, and Swiss exchanges—Valour continues to expand its product suite to cater to both emerging and established markets.

The 1.4% annual yield offered by the ETP positions it among the most competitive options in the regulated digital asset space. By leveraging Core Chain’s non-custodial staking mechanism, Valour ensures that Bitcoin is never transferred from its designated wallet, minimizing counterparty risk and maintaining investor confidence. Analysts note that this contrasts with other yield-generating platforms that have faced scrutiny due to opaque structures or regulatory uncertainty. Valour’s approach aligns with the principles of transparency and regulatory compliance, which are increasingly critical for institutional adoption in the digital asset space.

Looking ahead, Valour aims to continue expanding its product lineup and market presence, emphasizing innovation while maintaining regulatory excellence. As the demand for institutional-grade digital asset investment tools grows, products like the 1Valour Bitcoin Staking ETP are likely to play a pivotal role in shaping the future of finance, blending the strengths of traditional markets with the innovation of blockchain technology.