Valour, a subsidiary of DeFi Technologies, has launched a Bitcoin staking exchange-traded product (ETP) on the London Stock Exchange, allowing investors to explore crypto yield opportunities as the UK prepares to relax digital asset restrictions.
According to a Thursday announcement, the Bitcoin staking ETP offers a 1.4% annual yield, secured by Bitcoin (BTC) held in cold storage and utilizing multiparty computation (MCP) technology for added security.
Currently, this Bitcoin staking ETP is accessible to institutions and professional investors. Retail investors in the UK will be permitted to purchase crypto exchange-traded notes (ETNs) starting October 8, following the removal of a ban that had been in effect since 2021.
The announcement did not clarify how the yield would be generated. However, Valour operates another Bitcoin ETP on a French exchange that generates Bitcoin yield through coin delegation on the Core Chain, an EVM-compatible layer-1 blockchain utilizing Bitcoin’s proof-of-work consensus mechanism.
Shares of DeFi Technologies rose by 5% on Nasdaq following the announcement, according to Google Finance data.
While Bitcoin does not inherently produce staking yield, holders can achieve returns via alternative methods such as centralized lending platforms, Bitcoin layer-2 networks like Stacks and Babylon, or by wrapping BTC into tokens like Wrapped Bitcoin (WBTC) for participation in DeFi lending protocols.
In May, cryptocurrency exchange Coinbase introduced a Bitcoin yield fund aimed at non-US institutional investors. According to Solv Protocol’s co-founder Ryan Chow, there’s a growing demand for yield-bearing Bitcoin strategies as companies seek liquidity without liquidating their BTC.
Bitcoin and Ether (ETH) ETPs made their debut on the London Stock Exchange in May 2024.
Related: US, UK to collaborate on AI, quantum computing, nuclear energy development
United Kingdom crypto changes abound
Recent developments indicate a potential shift in the UK’s stance toward cryptocurrencies.
The Financial Times reported on Tuesday that the UK is seeking to enhance collaboration with the United States on digital assets, aiming to foster innovation in the industry.
Trade groups have advocated for the government to incorporate blockchain technology into the UK’s tech partnership with the US.
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