Hello,steem user, I hope you are all well. Today I got some exciting (or a bit shocking) news that I would like to share with you. As you all know, I always try to keep you upbeat and excited.

A New Way to Earn on Bitcoin

Earning yield on Bitcoin is still a fresh concept, but new products are slowly making it possible. One of the latest examples comes from DeFi Technologies’ subsidiary Valour, which just launched a Bitcoin staking exchange-traded product (ETP) on the London Stock Exchange.

The ETP offers an annual yield of 1.4% and is backed by Bitcoin kept in cold storage, with extra security provided through multiparty computation (MPC) technology. For now, access is limited to institutions and professional investors, but the timing is important: the UK will allow retail investors back into crypto ETNs starting October 8, after lifting a ban that’s been in place since 2021.

How the Yield Works

The company hasn’t detailed exactly how the yield will be generated. However, Valour already operates a similar product in France that uses coin delegation on the Core Chain — an EVM-compatible blockchain that connects to Bitcoin’s proof-of-work network — to generate returns.

This approach reflects a bigger trend. Even though Bitcoin itself doesn’t offer staking rewards, holders are finding ways to earn yield through centralized lending platforms, layer-2 networks like Stacks and Babylon, or by wrapping BTC into tokens like Wrapped Bitcoin (WBTC) to use in DeFi lending protocols.

Institutional Interest Is Rising

The news also gave a boost to DeFi Technologies’ stock, which rose 5% on Nasdaq following the announcement. It’s not the first move in this direction — back in May, Coinbase launched a Bitcoin yield fund aimed at non-US institutional investors.

According to Ryan Chow, co-founder of Solv Protocol, demand for yield strategies on Bitcoin is growing quickly:

“Firms are looking for ways to gain liquidity without having to sell their BTC.”

The UK’s Changing Stance on Crypto

Recent developments suggest that the United Kingdom’s approach to cryptocurrencies may be shifting.

On Tuesday, the Financial Times reported that the UK is looking to increase cooperation with the United States on digital assets, with Britain looking to boost innovation in the sector.

Trade groups have even pushed the government to add blockchain technology to the UK’s tech collaboration with the US.

Question for you:

Do you think Bitcoin yield products will attract long-term institutional demand, or are they just another short-term trend in the ongoing crypto innovation race?