Bitcoin Staking ETP Debuts on London Stock Exchange

Valour launches UK’s first Bitcoin staking ETP on LSE, offering 1.4% yield and bridging DeFi with traditional finance.

A new exchange-traded product offering Bitcoin staking has officially launched on the London Stock Exchange. It is a major milestone in an effort to regulate the investment of digital assets in Britain. The first of its kind, the product by Valour Digital Securities Limited, a subsidiary of DeFi Technologies, is a physically-backed Bitcoin that has a staking reward and is offered via a conventional financial market platform.

Bitcoin ETP With Yield Debuts in UK for Institutional Investors

The product, which targets professional and institutional investors, has the name of the 1Valour Bitcoin Physical Staking ETF (ISIN: GB00BRBV3124). It offers an exposure to Bitcoin at an extra 1.4 per cent. yearly yield, as indicated by the net asset value (NAV) at the conclusion of every trading day. The underlying assets are stored in cold storage by Copper, one of the top digital asset custody providers. In addition, they provide the security of institutions.

The launch comes at a critical juncture of the regulatory environment in the UK. Since 2021, the country has planned to lift its long-standing ban on crypto-linked ETNs for retail investors. However, due to limited resources, only professional and institutional investors can currently access the newly listed ETF. Even so, the new regulations could soon open access to a broader audience.

Related Reading: BlackRock Introduces Bitcoin ETP in Europe | Live Bitcoin News

Valour has highlighted that the product acts as an interface between conventional capital markets and new decentralized finance (DeFi) ecosystems. The ETP will create new utility in the exposure to Bitcoin by combining regulated exchange infrastructure with yield-generating capabilities.

According to one post-launch statement, Valour leadership indicated the importance of providing yield and physical support in one listed product. The strategy will support the institutional demand on digital assets and deal with the issues of custody and compliance.

Valour ETP Uses Bitcoin Staking to Blend DeFi with TradFi

The yield strategy works by staking Bitcoin on blockchain-compatible networks like Core Chain. Core Chain is a Bitcoin-based, proof-of-work layer-1 blockchain that supports EVM. As a result, BTC holders can earn yield while keeping exposure to Bitcoin—an approach growing popular in DeFi.

The same approaches have been witnessed in other market segments. Stacks and Babylon are layer-2 protocols and centralized platforms that tokenize Bitcoin as a form of passive income to BTC holders, all available in DeFi lending protocols. It is also worth noting that Coinbase released a similar Bitcoin yield fund in May, which focuses on institutional investors outside the United States.

The launch of a Bitcoin staking ETP on the London Stock Exchange is an important move towards matching the digital asset innovation to traditional finance. Another aspect of the product that highlights the increasing interest of professional investors in secure and yielding instruments based on major cryptocurrencies is the product introduction.

With the increasing institutional attention to Bitcoin, a mix of staking incentives and controlled entry into the market can contribute to defining new rules of the digital asset introduction into the mainstream portfolio. Additional changes in UK crypto policy may affect the wider adoption and availability in the coming years.