DeFi Technologies’ subsidiary Valour has introduced a new way for institutional investors to earn passive income on Bitcoin, with the launch of a Bitcoin staking exchange-traded product (ETP) on the London Stock Exchange (LSE). This marks a significant milestone for crypto finance in the UK, ahead of upcoming regulatory changes that could soon open the door to retail investors.
A New Path to Bitcoin Yield for Institutions
The new product, currently available only to institutional and professional investors, offers a 1.4% annual yield on Bitcoin holdings. Security is a top priority—Valour uses cold storage combined with multiparty computation (MPC) technology to protect the underlying assets.
While the company hasn’t fully disclosed how the yield is generated, industry experts point to similar products in Europe. For example, a Bitcoin ETP listed in France uses Core Chain, an EVM-compatible blockchain backed by Bitcoin’s proof-of-work, to enable coin delegation and staking rewards. It’s likely Valour’s strategy follows a comparable model.
Retail investors may not have to wait long to get access. The UK’s ban on crypto exchange-traded notes (ETNs) is set to be lifted on October 8, potentially paving the way for broader adoption of this yield-generating crypto product.
Market Responds Positively as UK Embraces Digital Assets
The market reaction was swift—shares of DeFi Technologies rose 5% on Nasdaq following the announcement, signaling strong investor interest in crypto products that offer real returns beyond simple price speculation.
This launch also reflects a broader trend: the UK is warming up to digital assets. Recent reports suggest that the UK is seeking closer regulatory cooperation with the United States on crypto oversight. At the same time, leading blockchain trade groups are encouraging the government to formally recognize blockchain technology as part of the nation’s future tech strategy.
As regulatory clarity increases, and with the lifting of the ETN ban just around the corner, the stage is set for products like Valour’s Bitcoin staking ETP to play a major role in shaping the future of crypto investment in the UK.
