We do the research, you get the alpha!
Canadian financial tech firm DeFi Technologies announced Tuesday that its subsidiary, Valour, has launched what it calls the first ever yield-bearing Bitcoin exchange-traded product (ETP). The company exclusively tells Decrypt that investors will get exposure to BTC and earn a 5.65% yield—provided those investors are located in its Nordic markets.
"We are thrilled to introduce the world's first Yield Bearing Bitcoin ETP, offering investors an unprecedented opportunity to gain exposure to Bitcoin while earning a substantial yield," said Olivier Roussy Newton, CEO of DeFi Technologies, in a press release. "Valour Bitcoin Staking (BTC) ETP embodies our commitment to innovation in the digital asset space."
The new Valour BTC ETP began trading May 10 on the Nordic Growth Market exchange, DeFi Technology said, and charges a 1.9% management fee.
The Nordic Growth Market is a regulated exchange established in 1984 that operates in Sweden, Finland, Denmark, and Norway. The investment vehicle is offered in collaboration with Core Chain, a Bitcoin-powered blockchain network compatible with the Ethereum Virtual Machine (EVM).
Valour's BTC ETP generates yield by delegating Bitcoins to validators on the Core Chain through non-custodial, native Bitcoin staking, DeFi Technologies explains. The staked Bitcoin earns staking rewards paid out in CORE tokens, the native asset of the Core blockchain, which are then reinvested into the ETP.
The firm claims that its security setup avoids the risks of Bitcoin staking by maintaining custodial control during the stake transaction, which includes a lockup period tied to specific Core validator and reward addresses.
“During the lockup period, the Bitcoins cannot be transferred or slashed,” DeFi Technologies explained. “Only the owner can transfer the Bitcoins once the lockup period expires.”
The Core Chain launched functionality in April that allows Bitcoin holders to stake their BTC directly to earn yield without having to wrap the tokens or give up custody. As Decrypt reported at the time, this capability is enabled by Core's "Satoshi Plus" hybrid consensus mechanism.
"This groundbreaking product brings BTCfi to a wider audience, and sustainable yield to Bitcoin holders," Core Chain contributor Brendon Sedo said in the press release.
In March, the Core Foundation also announced the launch of a $15 million venture funding initiative focused on supporting blockchain projects and entrepreneurs in Africa, Latin America, and Southeast Asia.
The launch of the Valour BTC ETP comes as more traditional financial institutions and investors seek exposure to Bitcoin and other cryptocurrencies, such as through the recently approved Bitcoin spot ETFs in the U.S., rather than direct holdings. Offering a yield component on top of Bitcoin exposure could further attract interest, albeit only within a regional market.
Editor’s note: This article was written with the assistance of AI. Edited and fact-checked by Ryan Ozawa.