Valour Shatters UK Barrier: FCA Greenlights Yield-Bearing, Physically Backed BTC & ETH Staking ETPs

London's crypto landscape just got a major institutional upgrade. Valour, a leading digital asset ETP issuer, has secured the coveted regulatory nod from the UK's Financial Conduct Authority (FCA). The approval unlocks a new class of investment product for British investors: physically backed Bitcoin and Ethereum Exchange-Traded Products that generate yield through staking.

The Yield Play Comes to Main Street

This isn't just another tracking vehicle. By integrating staking rewards directly into the ETP structure, Valour bypasses the traditional trade-off between security and passive income. Investors gain exposure to the core assets' price action while the underlying assets work to generate additional returns—a feature previously accessible only to those navigating the complexities of direct custody and validator operations.

Regulatory Rigor Meets Crypto Innovation

The FCA's approval signals a maturing stance. It requires a product structure robust enough to satisfy one of the world's most stringent financial watchdogs. Physical backing ensures each ETP share corresponds to a real, held asset, eliminating counterparty risk from synthetic structures. The move effectively bridges the gap between the decentralized ethos of crypto and the compliance-heavy world of traditional finance—though skeptics might note it's another case of Wall Street machinery repackaging blockchain's disruptive potential for a tidy fee.

A New Benchmark for Access

For the UK market, this sets a precedent. It provides a regulated, familiar exchange-traded wrapper for investors seeking crypto exposure without forsaking the investor protections of the traditional system. The launch challenges incumbent financial products by offering a dual benefit: asset appreciation plus yield. It turns static holdings into productive ones, forcing legacy investment vehicles to play catch-up in an era where digital assets don't just sit idle.

The gatekeepers have opened a new door. Whether this leads to a flood of institutional capital or simply offers a safer haven for the already-converted, one thing is clear: the era of 'buy and hold' is evolving into 'buy, hold, and earn.' The City's old guard might finally have to learn what 'staking' means.

What products is Valour bringing to UK retail investors?

The approval, which takes effect on January 26, enables UK retail investors to gain exposure to two physically backed staking products, which are the 1Valour Bitcoin Physical Staking ETP and the 1Valour Ethereum Physical Staking ETP. 

Both products incorporate staking yields into their net asset value, allowing investors to benefit from blockchain validation rewards through traditional brokerage accounts.

“This is a major milestone for Valour and DeFi Technologies as we continue expanding access to regulated digital asset investment products,” said Johan Wattenström, CEO and chairman of DeFi Technologies. “The UK is one of the world’s most important financial markets, and these approvals broaden our ability to serve UK retail investors with transparent, exchange-listed products.”

Product launch made possible by a change in regulation

The launch follows the FCA’s decision in October 2025 to lift a ban on retail access to crypto exchange-traded notes that had been in place since January 2021. The original prohibition was imposed over concerns about extreme price volatility and inadequate investor protections in the nascent crypto market.

The revised framework, which permits retail sales from October 20, 2025, requires that products be limited to bitcoin or Ether, and they should be physically backed and hold crypto assets in cold storage with regulated custodians.

From April 6, 2026, crypto ETPs will be reclassified from Stocks and Shares Individual Savings Accounts (ISAs) to Innovative Finance ISAs in the UK.

However, these products are not covered by the Financial Services Compensation Scheme, leaving investors exposed to issuer and market risks.

UK authorities are expected to implement a comprehensive crypto regulatory regime by October 25, 2027, which could further standardize oversight and potentially expand the range of permissible products and services.

While the immediate focus is on Bitcoin and Ethereum products, there are some who believe that the regulation will later evolve to accommodate additional digital assets to gain approval over time, provided they meet stringent custody, transparency, and investor protection standards.

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