Valour Digital Securities, a subsidiary of DeFi Technologies (DEFT), has taken a significant step in broadening its market presence by debuting its Bitcoin staking exchange-traded product (ETP) on the London Stock Exchange (LSE). This move marks an ambitious expansion beyond mainland Europe for a product that has already garnered attention in Germany.
A New Frontier in London
The Valour Bitcoin Physical Staking (1VBS) ETP has been trading on Deutsche Börse’s Xetra platform since November 5, 2024, and its introduction to the LSE signals a strategic push to capture the growing interest in cryptocurrency investing. For professional investors keen on diversifying their portfolios, this product offers an enticing opportunity: exposure to Bitcoin with an added 1.4% annual staking yield.
Each share of this ETP is backed 1:1 with Bitcoin securely held in cold storage by Copper, ensuring a robust level of security for investors. The yield is incorporated into the net asset value (NAV), which is transparently published daily alongside entitlements and indicative prices, providing investors with the clarity and confidence they seek in volatile markets.
Expansion Beyond Mainland Europe
Valour’s strategic expansion to the London Stock Exchange is not just a geographical shift but also a significant step in its aim to cater to a wider European audience. The choice of London, a leading global financial hub, underscores the company’s ambition to tap into a diverse and sophisticated investor base.
Tommy Franceschi, CEO of Valour, commented on this development, saying, “Our goal is to make digital asset investments accessible and attractive to institutional investors across Europe. Expanding to the LSE is a natural progression in our mission to democratize Bitcoin staking.”
Challenges and Market Reactions
However, the journey has not been entirely smooth. Shares of DeFi Technologies saw a 3.12% drop to $2.63 in early Nasdaq trading following the announcement. This decline may reflect investor caution amid a fluctuating crypto market and uncertainties surrounding regulatory landscapes.
Despite this, Valour remains optimistic. The company believes that the underlying value proposition of its product, coupled with the security of having the Bitcoin in cold storage, will ultimately win over skeptics.
Regulatory Landscape and Future Prospects
Currently, access to the new London-listed ETP is restricted to professional investors, as per the U.K.’s regulatory framework. However, there is light on the horizon for retail investors. Starting October 8, they will be able to engage with crypto exchange-traded notes (ETNs) on recognized investment exchanges, including the LSE, under the Financial Conduct Authority (FCA) guidelines.
This regulatory development is a game-changer. By opening doors to retail investors, the FCA is signaling a shift towards more inclusive investment avenues in the crypto space. It’s a move likely to boost liquidity and further validate cryptocurrencies as a legitimate asset class.
The Road Ahead
As Valour sets its sights on capturing a broader market share, the debut of its Bitcoin staking ETP on the LSE could be a harbinger of more innovative products to come. The company is poised to leverage its experience and insights from the German market to refine its offerings and meet the diverse needs of European investors.
Industry experts are keeping a close watch on how this expansion will unfold, especially in terms of its impact on Valour’s market performance and its ability to attract institutional investments. If successful, it could pave the way for other cryptocurrency firms to explore similar expansions, thereby enriching the European crypto investment landscape.
While challenges remain, particularly in navigating regulatory complexities and market volatility, Valour’s initiative reflects a broader trend of increasing institutional interest in cryptocurrencies. As the crypto market continues to mature, products like the 1VBS ETP could play a crucial role in shaping the future of digital asset investments.
In conclusion, Valour’s foray into the London Stock Exchange is more than just a new listing; it’s a statement of intent in the evolving world of cryptocurrency investments. By offering a secure and potentially lucrative avenue for Bitcoin exposure, Valour is setting the stage for a new wave of investment opportunities that could redefine how digital assets are perceived and utilized in traditional financial markets.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
