Valour secures FCA approval to offer yield-bearing, physically backed BTC and ETH staking ETPs in UK

Valour, a subsidiary of Nasdaq-listed DeFi Technologies, has received regulatory approval from the UK Financial Conduct Authority (FCA) to offer yield-bearing cryptocurrency exchange-traded products to retail investors through the London Stock Exchange (LSE).

Valour has previously launched products on LSE for professional investors. It has an asset-backed Ethereum Physical Staking ETP for professional investors and also reportedly has the record for the world’s first physically backed Bitcoin Staking ETP.

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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