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ETP issuer Valour has launched a fully backed Ethereum staking ETP on the London Stock Exchange, marking a pivotal step for institutional access to decentralized finance in the U.K.
Valour, a Swiss digital asset investment firm run by DeFi Technologies Inc., has introduced a physically-backed Ethereum (ETH) staking exchange-traded product on the London Stock Exchange, providing institutional investors with passive, non-leveraged exposure to ETH while allowing them to earn staking rewards.
In a Sept. 30 press release, the Swiss firm stated that the product complies with the Financial Conduct Authority’s stipulations and is supported by ETH held in cold storage by custodians Copper Markets AG, with staking services provided by Blockdaemon.
London welcomes first Ethereum ETP with staking
The launch follows LSE’s guidance for admitting physically-backed crypto ETPs. According to DeFi Technologies CEO Olivier Roussy Newton, the product bridges traditional finance and digital assets, offering institutional investors an efficient way to gain exposure to Ethereum and its staking benefits. For Valour, this latest product is an addition to more than a dozen crypto-linked ETPs already available to investors.
The move aligns with recent developments in the U.S., where the Securities and Exchange Commission approved Ethereum spot ETFs in mid-July, though without staking rewards. Ethereum staking yields, currently around 3.19% per data from Staking Rewards, are expected to gain prominence as analysts at FalcoX predict a bull market driven by increased liquidity and favorable outcomes in the 2024 elections.