Quick Breakdown
- Valour launched a Bitcoin staking ETP on the LSE with a 1.4% annual yield.
- The product is currently limited to institutions, with retail access possible from October.
- The UK is signalling a more open stance toward crypto through regulatory changes and US cooperation talks
DeFi Technologies’ subsidiary Valour has rolled out a Bitcoin staking exchange-traded product (ETP) on the London Stock Exchange, offering institutional investors exposure to crypto yields as the UK signals a friendlier stance toward digital assets.
A first for Bitcoin staking in London
The new product, announced Thursday, delivers an annual yield of 1.4% and is fully backed by Bitcoin held in cold storage. Security is reinforced using multiparty computation (MPC) technology. At launch, the ETP is restricted to institutions and professional investors, but retail traders may soon gain access as the UK prepares to lift its ban on crypto exchange-traded notes (ETNs) on October 8, a restriction that has been in place since 2021.
How the yield works
While the announcement didn’t disclose the exact yield-generation method, Valour operates a similar Bitcoin ETP in France that delegates coins on the Core Chain, an EVM-compatible blockchain supported by Bitcoin’s proof-of-work mechanism. This strategy could hint at how returns are generated in the London-listed product.
Market response and broader context
News of the launch pushed shares of DeFi Technologies, traded on Nasdaq, up 5%, according to Google Finance data. The move also adds momentum to a growing trend in yield-focused Bitcoin products. In April, Coinbase launched a Bitcoin yield fund aimed at non-US institutional investors, while protocols like Stacks, Babylon, and Wrapped Bitcoin (WBTC) continue to provide alternative yield avenues.
UK’s changing crypto landscape
The introduction of Bitcoin and Ether ETPs on the London Stock Exchange earlier this year, combined with the latest staking product, underscores the UK’s shifting approach to digital assets. The Financial Times reported Tuesday that Britain is seeking deeper cooperation with the United States on digital assets, while industry trade groups are lobbying for blockchain to be included in the UK’s wider tech collaborations with the US.
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