Institutional Investors Get Secure Yield from First Regulated Bitcoin Staking ETP

Valour, a subsidiary of DeFi Technologies Inc., has launched the world's first physically-backed Bitcoin Staking Exchange Traded Product (ETP) on the London Stock Exchange (LSE), marking a significant milestone in the integration of traditional finance with decentralized digital assets. The product, known as "1Valour Bitcoin Physical Staking," is designed to provide institutional and professional investors with a secure and transparent way to gain exposure to Bitcoin while generating a yield. The ETP offers an annual staking yield of 1.4%, which is currently among the most competitive rates for regulated, exchange-traded Bitcoin products. This yield is added to the ETP’s net asset value (NAV) at the end of each trading day.

The ETP, which carries the ISIN GB00BRBV3124, is fully backed by physical Bitcoin held in institutional-grade cold storage with Copper. Each ETP share is collateralized 1:1 with actual Bitcoin, ensuring direct exposure to the cryptocurrency while mitigating the risks associated with hot wallets and potential cyber threats. The use of multi-party computation (MPC) technology further enhances security by splitting the private key into encrypted fragments distributed across multiple secure locations. This approach prevents any single entity from holding the full key, reducing the risk of theft or unauthorized access.

Transparency and simplicity are central to the design of the ETP. The ETP’s net asset value, Bitcoin entitlements, and indicative prices are published daily, offering full visibility into the underlying assets and eliminating the complexities of leveraged structures. This level of transparency is particularly appealing to institutional investors, who often require detailed reporting and compliance with regulatory standards. The ETP is available in both GBP and EUR denominations, broadening its accessibility across European markets.

The launch of Valour’s Bitcoin Staking ETP reflects a broader trend in the digital asset investment landscape. With over 85 ETPs listed across major European venues—including the London Stock Exchange, Börse Frankfurt, and SIX Swiss Exchange—Valour has solidified its position as a leader in regulated digital asset investment solutions. The company’s extensive product lineup underscores its commitment to bridging the gap between traditional capital markets and decentralized finance (DeFi). This ETP serves as a testament to Valour’s ability to innovate while maintaining regulatory compliance, a crucial factor in gaining institutional trust.

The product also aligns with the evolving regulatory landscape in the UK and Europe. In January 2025, the UK government issued the Staking Order, which clarified that qualifying crypto-asset staking arrangements are not classified as collective investment schemes (CIS). This regulatory clarity has removed a significant barrier for staking services and has encouraged innovation in the sector. The Staking Order ensures that staking activities can operate without falling under the more restrictive CIS framework, which is typically reserved for investment fund management. This development has created a more favorable environment for the growth of crypto-asset products like Valour’s ETP.

From an institutional investor’s perspective, the ETP offers several advantages. It addresses both the yield and security concerns that have historically limited institutional participation in Bitcoin. The 1.4% annual staking yield is particularly attractive in a market where traditional fixed-income returns remain suboptimal. Furthermore, the ETP’s structure allows investors to earn returns without directly holding or managing the underlying Bitcoin, reducing the operational and technical barriers to entry. This is especially beneficial for institutions that may lack the infrastructure or expertise to engage in direct staking or custody of cryptocurrencies.

Looking ahead, Valour’s Bitcoin Staking ETP could serve as a model for future digital asset products. The success of this offering may encourage the development of similar instruments for other cryptocurrencies, further diversifying the ETP landscape. As digital assets continue to gain traction in traditional financial markets, the availability of regulated, yield-generating products like this ETP will play a critical role in attracting institutional capital and fostering broader adoption. Valour’s leadership in this space, combined with the regulatory support provided by the UK government, positions the company at the forefront of the digital asset investment revolution.