Valour debuts physically-backed Ethereum staking ETP on LSE

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As a seasoned researcher who has been closely following the evolution of digital assets, I find myself genuinely excited about the latest development – Valour’s launch of a fully backed Ethereum staking ETP on the London Stock Exchange. Having spent years delving into the complexities of blockchain technology and its potential to disrupt traditional finance, it’s refreshing to see this pivotal step towards institutional access to decentralized finance in the U.K.

Valour, an issuer of ETPs (Exchange Traded Products), has debuted a fully collateralized Ethereum staking product on the London Stock Exchange. This move signifies a significant milestone in providing institutional investors with easier access to decentralized finance within the U.K. markets.

A digital asset investment company called Valour, which is based in Switzerland and managed by DeFi Technologies Inc., has launched a stock market-listed exchange-traded product that’s backed by real Ethereum (ETH). This new product allows institutional investors to invest passively and non-leveraged in ETH, while also earning rewards through staking. It’s been listed on the London Stock Exchange.

On September 30, the Swiss company announced that their product meets the requirements set by the Financial Conduct Authority and is secured by Ether (ETH) kept in offline vaults by custodian Copper Markets AG. The staking services for this product are handled by Blockdaemon.

London welcomes first Ethereum ETP with staking

The release of this product aligns with London Stock Exchange’s instructions for listing physically-backed cryptocurrency Exchange Traded Products (ETPs). As stated by DeFi Technologies CEO Olivier Roussy Newton, it serves as a conduit between conventional finance and digital assets, providing institutional investors with an effective means to invest in Ethereum and reap its staking rewards. For Valour, this new product is merely another crypto-linked ETP added to the existing portfolio of over a dozen such products already accessible to investors.

The action aligns with recent trends in the U.S., as the Securities and Exchange Commission has recently approved Ethereum spot ETFs, although these do not include staking rewards. However, analysts at FalcoX anticipate that yields from Ethereum staking, currently approximately 3.19% (according to Staking Rewards data), will become more significant. This prediction is based on their belief in a bull market due to increased liquidity and positive results from the 2024 elections.

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2024-09-30 16:57