Valour, a subsidiary of DeFi Technologies, has launched a Bitcoin staking exchange-traded product (ETP) on the London Stock Exchange, offering investors new opportunities for crypto yields as the UK prepares to relax its regulations on digital assets.
According to a Thursday announcement, the Bitcoin staking ETP offers a 1.4% annual yield, secured by Bitcoin (BTC) stored in cold wallets and utilizing multiparty computation (MCP) technology for added security.
Currently, this new Bitcoin staking ETP is accessible only to institutions and professional investors. Retail investors in the UK will regain the ability to purchase crypto exchange-traded notes (ETNs) starting October 8, lifting a ban that has been in place since 2021.
The announcement did not detail the mechanisms for generating the yield. However, Valour has an existing Bitcoin ETP on a French exchange that utilizes coin delegation on the Core Chain to yield Bitcoin. Core Chain is an EVM-compatible layer-1 blockchain supported by Bitcoin’s proof-of-work consensus mechanism.
After the news, shares of DeFi Technologies on Nasdaq surged by 5%, according to Google Finance data.
While Bitcoin does not directly generate staking yield, investors can derive returns through various methods such as centralized lending platforms, Bitcoin layer-2 networks like Stacks and Babylon, or by converting BTC into Wrapped Bitcoin (WBTC) to engage in DeFi lending protocols.
In May, cryptocurrency exchange Coinbase introduced a Bitcoin yield fund aimed at non-US institutional clients. As noted by Solv Protocol’s co-founder Ryan Chow, the appetite for yield-bearing Bitcoin strategies is growing as organizations 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
Changes in UK Crypto Landscape
Recent trends indicate a possible shift in the United Kingdom’s stance toward cryptocurrencies.
On Tuesday, the Financial Times reported that the UK is seeking to enhance cooperation with the United States regarding digital assets, aiming to spur innovation in the sector.
Trade organizations have even urged the government to incorporate blockchain technology into the UK’s tech collaboration efforts with the US.
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