Valour Inc., a subsidiary of DeFi Technologies Inc., in partnership with Core Foundation, has introduced a financial product for German investors: the world’s first yield-bearing Bitcoin (BTC) ETP. This product reportedly provides exposure to Bitcoin while offering a 5.65% annualized yield. 

Trading for the Valour Bitcoin Staking (BTC) EUR ETP commenced on June 13, 2024, on Börse Frankfurt.

Before its debut in Germany, the Valour Bitcoin Staking (BTC) EUR ETP was introduced on the Nordic Growth Market (NGM) on May 10, 2024. The product's success in Sweden paved the way for its launch in Germany.

Key Features of the ETP

Exposure to Bitcoin: Investors gain exposure to Bitcoin without needing to sell or trade it directly.

Yield: A 5.65% annualized yield attributed to the Net Asset Value (NAV) daily.

Management Fee: The ETP has a 1.9% management fee.

Staking Mechanism: Yield is generated through non-custodial, native Bitcoin staking on the Core Chain.

How It Works

The Valour Bitcoin Staking (BTC) EUR ETP reportedly simplifies Bitcoin investment, making it more secure and accessible. 

The yield is generated by delegating Bitcoins to a validator on the Core Chain. This is achieved through a specific type of native Bitcoin transaction called a ‘stake transaction,’ which includes a lockup period and Core Chain staking details. During this period, Bitcoins cannot be transferred, ensuring security.

Investor Benefits

Simplified Access: The ETP provides a straightforward way to invest in Bitcoin.

Yield without Trading: Investors receive yield without needing to sell or trade their Bitcoin holdings.

Secure Staking: Security is maintained through non-custodial staking and specific lockup periods.

The Core Chain Advantage

The Core Foundation, dedicated to the development of the Core blockchain network, plays a pivotal role in this launch.

"Core Foundation is excited to collaborate with Valour Inc. to launch the world's first yield-bearing Bitcoin ETP,” said Core contributor Brendon Sedo. This groundbreaking product brings BTCfi to a wider audience and sustainable yield to Bitcoin holders. Investors can now earn yield while maintaining exposure to Bitcoin."

Core Chain is a decentralized, scalable layer-1 blockchain that leverages Bitcoin's Proof of Work (PoW) through a unique consensus mechanism known as 'Satoshi Plus'. This mechanism allows Bitcoin miners to delegate their PoW to Core validators without impacting their future Bitcoin rewards.

Core DAO has been proactive in supporting the blockchain ecosystem. In February, they announced the CORE Starter Program, backed by over $300,000 in tools and incentives to empower developers. This program aims to foster innovation in decentralized applications (dApps) secured by Bitcoin.