In a major step for crypto finance, Valour Digital Securities, a subsidiary of DeFi Technologies, has introduced the first physically backed Bitcoin staking exchange-traded product (ETP) on the London Stock Exchange. The product, called 1Valour Bitcoin Physical Staking (1VBS), relies on Core DAO’s non-custodial staking infrastructure and offers an annual yield of about 1.4%. For now, it is only available to institutional and professional investors.
A New Yield-Bearing Bitcoin Product
The 1VBS ETP combines regulated Bitcoin exposure with daily yield accrual, meeting growing demand among institutions for income-generating crypto products.
- Each share is backed 1:1 by Bitcoin stored in cold wallets.
- Multi-party computation (MPC) technology secures custody while maintaining decentralization.
- Yield is reflected directly in the product’s net asset value (NAV).
Although Bitcoin itself does not support staking due to its proof-of-work consensus, Valour uses Core DAO’s architecture, including timelocked BTC delegation, to generate yield. This approach builds on Core’s earlier deployments of Bitcoin delegation and timelock models.
Regulatory Access and Market Impact
Initially, the ETP is limited to professional and institutional investors under UK rules. However, retail investors will gain access to crypto ETPs and ETNs again starting October 8, 2025, when the UK lifts restrictions that have been in place since 2021.
The launch has already drawn market attention. Shares of DeFi Technologies rose nearly 5% on the Nasdaq after the announcement. The move also aligns with London’s broader strategy of opening its capital markets to digital assets. In 2024, the LSE listed its first spot Bitcoin and Ethereum ETPs, laying the groundwork for more advanced crypto investment vehicles.
Bridging DeFi and Traditional Finance
The arrival of 1VBS marks a new stage in merging decentralized finance mechanics with traditional capital markets. Institutional investors now have a way to earn yield on Bitcoin through a regulated framework without losing control over custody.
While the initial yield of 1.4% may seem modest, the structural design could unlock higher-yielding options as staking models evolve. With UK retail access reopening later this year, the adoption rate and regulatory reactions in other regions will determine whether Bitcoin staking ETPs grow into a mainstream asset class.
