Canadian fintech company DeFi Technologies revealed on Tuesday that its subsidiary, Valour, has rolled out what it claims to be the world's first yield-bearing Bitcoin exchange-traded product (ETP). The product allows investors in Nordic markets to gain exposure to BTC while earning a 5.65% yield.
Olivier Roussy Newton, CEO of DeFi Technologies, expressed excitement about the launch, emphasizing the innovative nature of the Valour Bitcoin Staking (BTC) ETP. The product commenced trading on May 10 on the Nordic Growth Market exchange, with a management fee of 1.9%.
The Nordic Growth Market, operating in Sweden, Finland, Denmark, and Norway, provides a regulated platform for the investment vehicle. The ETP is developed in collaboration with Core Chain, a Bitcoin-based 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. Staking rewards, paid out in CORE tokens, are reinvested into the ETP. DeFi Technologies emphasizes the security measures in place to mitigate risks associated with Bitcoin staking.
The Core Chain's launch of Bitcoin staking functionality in April enables BTC holders to earn yield without wrapping tokens or relinquishing custody, facilitated by Core's "Satoshi Plus" hybrid consensus mechanism.
Brendon Sedo, a contributor to Core Chain, highlighted the significance of the product in bringing sustainable yield to Bitcoin holders and expanding BTCfi to a broader audience.
In March, the Core Foundation announced a $15 million venture funding initiative aimed at supporting blockchain projects and entrepreneurs in Africa, Latin America, and Southeast Asia.
The launch of the Valour BTC ETP aligns with a growing trend of traditional financial institutions and investors seeking exposure to Bitcoin and cryptocurrencies. Offering a yield component alongside BTC exposure may further attract interest, particularly within the regional market served by the Nordic Growth Market.
May 2024, Cryptoniteuae