UK institutions gain access to yield-bearing Bitcoin investment products
The London Stock Exchange (LSE) has officially listed a Bitcoin staking exchange-traded product (ETP), offering institutional investors exposure to Bitcoin with a yield component. The move underscores the UK’s evolving stance toward digital assets as regulators ease restrictions on crypto-based financial products.
Details of the New Bitcoin Staking ETP
The product was launched by Valour, a subsidiary of DeFi Technologies, and provides investors with a 1.4% annual yield. It is fully backed by Bitcoin (BTC) held in cold storage, with security ensured through multiparty computation (MCP) technology.
Currently, the ETP is only available to institutions and professional investors. However, the UK will reopen access for retail investors to buy crypto exchange-traded notes (ETNs) starting October 8, 2025, lifting a ban that has been in place since 2021.
Although the issuer has not disclosed the exact yield generation method, Valour operates a similar Bitcoin ETP on a French exchange that uses coin delegation on the Core Chain—an EVM-compatible blockchain backed by Bitcoin’s proof-of-work consensus—to generate returns.
Growing Market for Bitcoin Yield Products
While Bitcoin itself does not natively generate staking rewards, investors are increasingly turning to alternative yield strategies, such as:
- Centralized lending platforms
- Bitcoin layer-2 networks like Stacks and Babylon
- Wrapped Bitcoin (WBTC) for participation in DeFi lending protocols
This demand is evident as major players like Coinbase recently introduced a Bitcoin yield fund for non-US institutional investors, and decentralized protocols such as Solv report rising appetite for liquidity solutions tied to BTC.
Market Reaction and Regulatory Outlook
Following the announcement, DeFi Technologies’ shares closed up 5% on Nasdaq, reflecting investor confidence in the firm’s expanding crypto footprint.
The listing also coincides with a broader policy shift in the UK, where regulators and trade groups are pushing for deeper collaboration with the US on digital assets and blockchain technology.
The LSE’s Bitcoin staking ETP could mark the beginning of a new wave of institutional crypto products in the UK, bridging traditional finance with blockchain innovation and potentially setting the stage for retail adoption later this year.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.