Key Takeaways:
DeFi Technologies’ Valour launches a Bitcoin staking exchange-traded product (ETP) on the London Stock Exchange.
The product offers a 1.4% annual yield, backed by BTC held in cold storage with multiparty computation (MCP) security.
Currently limited to institutions and professional investors, with UK retail access to crypto ETNs reopening on Oct. 8.
Shares of DeFi Technologies rose 5% on Nasdaq following the announcement.
London Stock Exchange Debuts Bitcoin Staking Product
The London Stock Exchange (LSE) has listed its first-ever Bitcoin staking exchange-traded product (ETP), introduced by Valour, a subsidiary of DeFi Technologies. The ETP provides institutional investors with exposure to Bitcoin while earning a 1.4% annual yield, marking another step forward for crypto finance in the UK.
The product is backed by Bitcoin held in cold storage, secured with multiparty computation (MCP) technology. Unlike traditional Bitcoin holdings, this structure enables yield generation — though the announcement did not specify the precise method.
Yield Mechanism and Institutional Focus
While Bitcoin itself does not natively generate staking rewards, Valour has previously used Core Chain, an EVM-compatible layer-1 network anchored to Bitcoin’s proof-of-work, to delegate coins and generate yield in a similar product listed in France.
Currently, the new Bitcoin staking ETP is available only to institutions and professional investors. However, beginning Oct. 8, the UK will lift its ban on retail access to crypto exchange-traded notes (ETNs), in place since 2021, potentially opening the door to broader adoption.
Growing Demand for Bitcoin Yield Strategies
The launch reflects growing investor appetite for yield-bearing Bitcoin products. While BTC doesn’t generate staking income on its own, alternative methods such as centralized lending platforms, layer-2 solutions like Stacks and Babylon, or tokenized BTC in DeFi lending protocols have created opportunities for yield generation.
Earlier this year, Coinbase unveiled a Bitcoin yield fund for non-U.S. institutional clients, while demand for liquidity-focused BTC strategies continues to rise.
Shares of DeFi Technologies (NASDAQ: DEFTF) climbed 5% on Thursday, highlighting investor enthusiasm for yield-bearing crypto products.
UK Shifts Toward Crypto Innovation
The new listing comes as the United Kingdom eases restrictions on digital assets. In May 2024, the LSE introduced its first Bitcoin and Ether ETPs, and regulators are now moving to allow broader crypto investment access.
On Tuesday, the Financial Times reported that Britain is seeking to deepen digital asset collaboration with the U.S., as policymakers and trade groups push to include blockchain in UK–US tech cooperation agreements.
The debut of the Bitcoin staking ETP signals that the UK is positioning itself as a growing hub for regulated crypto innovation.
