London Stock Exchange Launches Its First Bitcoin Staking ETP

The London Stock Exchange (LSE) has officially listed a groundbreaking new product: a Bitcoin staking exchange-traded product (ETP) issued by Valour, a subsidiary of DeFi Technologies. This marks a major step forward in expanding yield opportunities from Bitcoin — an area still relatively new in traditional finance.

According to Thursday’s announcement, the ETP offers an annual yield of 1.4%, backed by Bitcoin securely held in cold storage and protected with multiparty computation (MPC) technology. For now, the product is available only to institutional and professional investors. Retail investors in the UK will gain access starting October 8, when the country lifts its ban on crypto exchange-traded notes (ETNs), in place since 2021.

The announcement did not specify how the yield will be generated. However, Valour already operates a Bitcoin ETP listed in France that generates returns through coin delegation on Core Chain — an EVM-compatible layer-1 blockchain secured by Bitcoin’s Proof-of-Work consensus.

Following the news, DeFi Technologies’ shares on Nasdaq jumped 5%, according to Google Finance data.

While Bitcoin itself does not produce staking yields, investors can still generate returns through alternative avenues such as centralized lending platforms, Bitcoin layer-2 networks like Stacks and Babylon, or by using Wrapped Bitcoin (WBTC) to participate in DeFi lending protocols. In May, Coinbase also launched a Bitcoin Yield Fund targeting non-US institutional investors, highlighting the growing demand for yield-bearing Bitcoin strategies as firms seek liquidity without selling their holdings.

Notably, in May 2024, the LSE also debuted its first Bitcoin and Ether ETPs.

Recent developments suggest that the United Kingdom is gradually softening its stance on digital assets. The Financial Times reported this week that the UK is seeking to deepen cooperation with the United States on cryptocurrencies, with an eye toward boosting innovation in the sector. Meanwhile, industry groups have urged the government to include blockchain technology in its bilateral tech collaboration with the US.