Valour to Launch First Fully-Backed Ethereum Staking ETP on LSE
ETP issuer Valour has issued the first fully-backed Ethereum staking exchange-traded product, ETP, on the London Stock Exchange, LSE. The move signals a significant step toward opening decentralized finance to institutional investors in the U.K.
A New Era for Institutional Crypto Investment
Valour, a Swiss-based digital asset investment firm under DeFi Technologies Inc. now offers institutional investors exposure to Ethereum with staking rewards. The ETP is physically backed by Ethereum, held in cold storage, and with staking services provided by Blockdaemon, one of the leading staking infrastructure providers.
This enables the institutions to generate passive rewards through staking in the Ethereum blockchain and gain non-leveraged exposure to ETH. The product is fully compliant with the FCA regulations, ensuring a secure investment structure.
First Crypto Product at LSE to Come with Staking Benefits
The launch by Valour of the Ethereum staking ETP comes back-to-back with the recent greenlight by the LSE for physically-backed crypto products. Olivier Roussy Newton, the CEO at DeFi Technologies commented, “This ETP closes the gap between traditional finance and digital assets, making for a seamless investment solution for those interested in decentralized finance.
This product, therefore, enables institutional investors to capture some kind of staking yield of about 3.19%, further cementing Ethereum’s status as one of the headliner assets in the digital finance space.
Global Trends in Ethereum Investment
It is in line with global trends, particularly in the U.S., where the Securities and Exchange Commission recently approved Ethereum spot ETFs. Whereas the U.S. products don’t offer staking rewards, Valour’s product will differ in that investors can tap into the staking ecosystem of Ethereum that is growing albeit very slow.
Analysts expect Ethereum staking to lead the next market cycle with even higher liquidity and more favorable economic conditions in 2024. Thus, the timely entry by Valour into this market can mark a unique advantage for investors in the growing decentralized finance world.
