DeFi Technologies, a Nasdaq-listed company, has launched a Bitcoin staking Exchange Traded Product (ETP) on the London Stock Exchange (LSE). Trading under the ticker 1VBS, this marks the first time a Bitcoin staking investment product has been launched on the LSE.

The ETP is fully collateralized by physical Bitcoin, which is held in institutional-grade cold wallets. The staking yield offered to investors is 1.4% per year. According to DeFi Technologies, every ETP share is collateralized 1:1 with actual Bitcoin, with holdings secured using multi-party computation (MPC) technology. The ETP's net asset value, Bitcoin entitlements, and indicative prices are published daily. The product trades under ISIN GB00BRBV3124 and is available in both GBP and EUR denominations, targeting professional investors and institutions.

Olivier Roussy Newton, CEO of DeFi Technologies, stated that the ETP launch demonstrates the company's intent to provide institutional-grade crypto solutions to the UK market. He added that listing the first Bitcoin staking product on the London Stock Exchange is a milestone linking traditional capital markets and decentralized finance. Valour Digital Securities Limited, a subsidiary of DeFi Technologies, is behind the new product, named "1Valour Bitcoin Physical Staking".

The United Kingdom is set to allow retail investors to buy crypto exchange-traded notes (ETNs) again on October 8, removing a ban that has been in place since 2021.

DeFi Technologies describes itself as bridging traditional capital markets with decentralized finance. The company's shares traded on Nasdaq closed up by 5% following the announcement. DeFi Technologies has a market capitalization of $15.69 million and is trading near its 52-week high of $139.17, demonstrating strong momentum with a 41% gain over the past six months. Valour currently offers investors the ability to earn a yield of 1.4% on properly custodied Bitcoin from a regulated, exchange-listed instrument.

While Bitcoin itself doesn't generate staking yield, holders can earn returns through alternative avenues such as centralized lending platforms, Bitcoin layer-2 networks like Stacks and Babylon, or by wrapping BTC into tokens like Wrapped Bitcoin (WBTC) to participate in DeFi lending protocols.