UK Regulators Enable Secure, Yield-Generating Bitcoin Investment for Institutions

Valour Digital Securities, a subsidiary of DeFi Technologies, has launched the first physically-backed Bitcoin staking exchange-traded product (ETP) on the London Stock Exchange (LSE), marking a significant expansion of its yield-generating Bitcoin product beyond mainland Europe. The 1Valour Bitcoin Physical Staking ETP (ticker: 1VBS) offers professional and institutional investors exposure to Bitcoin with an estimated annual staking yield of 1.4%, which is added to the product’s net asset value (NAV) dailyValour Debuts Bitcoin Staking ETP on LSE, Providing ... - CoinDesk^[1]. Each share is backed 1:1 by Bitcoin held in institutional-grade cold storage with Copper, a regulated custodianValour^[2]. The yield is generated through a staking process utilizing Core Chain’s Satoshi Plus consensus mechanism, which combines Delegated Proof of Work (DPoW) and Delegated Proof of Stake (DPoS) to enable Bitcoin holders to earn rewards without transferring custody of their assetsCore Chain’s White Paper v1.0.6: Unlocking Bitcoin …^[3].

The ETP’s launch aligns with the UK’s evolving regulatory landscape, which is set to allow retail access to crypto-linked products on October 8, 2025, under new Financial Conduct Authority (FCA) rulesAs the UK Moves Closer to Bitcoin ETFs, Will …^[4]. Currently, the product is restricted to professional investors under UK regulations, but the FCA’s proposed framework aims to align the UK with the US and EU in legitimizing regulated, yield-bearing Bitcoin exposure. This shift reflects broader efforts to enhance the UK’s competitiveness in digital asset markets, as highlighted by DeFi Technologies’ CEO Olivier Roussy Newton, who emphasized the product’s role in bridging traditional capital markets with decentralized financeDEFT Press Release: DeFi Technologies' Subsidiary Valour Digital ...^[5].

Valour’s Bitcoin staking ETP is part of a growing portfolio of over 85 ETPs across major European exchanges, including the LSE, SIX Swiss Exchange, and Euronext. The product’s structure ensures transparency, with daily publication of NAV, Bitcoin entitlements, and indicative pricesValour launches bitcoin staking ETP on London Stock Exchange^[6]. The ETP’s yield generation mechanism, which involves timelocking Bitcoin via Core Chain’s CheckLockTimeVerify (CLTV) opcode, allows holders to earn CORE token rewards without exposing their Bitcoin to traditional staking risks like slashingSelf-Custodial Bitcoin Staking (Timelocking) | Core DAO Official ...^[7]. Rewards are converted into Bitcoin and added to the ETP’s holdings, further reinforcing its yield-generating potential.

The launch has been supported by DeFi Technologies’ strategic investments in digital asset infrastructure, including Valour’s collaboration with Core DAO to develop non-custodial staking solutions. Valour plans to allocate $200 million in Bitcoin to strengthen network security and expand its product offeringsWorld’s First Bitcoin Staking ETP Launches on London Stock …^[8]. The company’s leadership, including Chairman Dr. Manfred Knof and General Counsel Philippe Lucet, highlighted the ETP’s role in setting a new standard for professional investors seeking secure, regulated access to digital assetsDeFi Technologies' Subsidiary Valour Digital Securities Limited ...^[9].

Market response to the product has been positive, with DeFi Technologies’ shares rising 5% on Nasdaq following the announcementWorld’s First Bitcoin Staking ETP Launches on London Stock …^[10]. Analysts note that the ETP’s introduction could drive further institutional adoption of Bitcoin staking strategies, particularly as demand for yield-bearing crypto products grows. The UK’s regulatory pivot toward accommodating crypto ETPs is also seen as a step toward harmonizing with global markets, where Bitcoin ETPs have been available in Europe since 2018 and in the US since 2024As the UK Moves Closer to Bitcoin ETFs, Will …^[11].

Valour’s Bitcoin staking ETP underscores the maturation of digital asset markets and the increasing integration of cryptocurrencies into traditional investment frameworks. As the UK prepares to open retail access to crypto-linked products, the product’s launch positions Valour at the forefront of regulated, yield-enhanced Bitcoin exposure for both institutional and, soon, retail investors.