Bitcoin ETFs are booming. But what if they could earn yield, too?
State Street, BlackRock, and other institutional giants are ushering in a new era for crypto ETFs. With Bitcoin exchange-traded funds now the third-largest asset class in the U.S. ETF market—surpassing precious metals—investors are asking a new question: How can these products become more capital efficient?
The answer lies in Core’s Self-Custodial Bitcoin Staking and Dual Staking infrastructure.
By integrating Core’s yield-generating staking mechanisms, Bitcoin ETFs, ETPs, and structured products can unlock real BTC-denominated returns—without compromising security, custody, or compliance.
The Crypto ETF Surge: What’s Happening Now
Spot Bitcoin ETFs launched in the U.S. in 2024 and have already amassed $136B in assets under management. According to State Street, crypto ETFs are set to eclipse precious metals ETFs in North America by year-end, driven by massive demand from advisors, pension funds, and institutions.
BlackRock’s inclusion of Bitcoin in its $58B iShares model portfolios marks a tipping point—Bitcoin has officially arrived in the traditional portfolio mix.
But there’s one big issue: most Bitcoin ETFs still don’t generate yield.
The Problem with Passive BTC
Traditional Bitcoin ETFs offer exposure, but that’s where the value ends. Holdings sit idle in cold storage—racking up custody fees without contributing to portfolio performance.
This makes Bitcoin less attractive compared to dividend-paying equities or interest-bearing bonds. Without yield, BTC remains a cost center.
That’s where Core comes in.
Core: The Yield Engine Behind Next-Gen Bitcoin Products
Core is Bitcoin’s first Proof of Stake layer. It enables BTC holders to earn real, sustainable yield by staking natively on Bitcoin’s base layer—no bridges, no wrapped assets, and no custody compromises.
Financial products that integrate with Core can:
Earn staking yield via Core’s validator reward pool
Stay compliant by working with regulated custodians like BitGo, Copper, and Hex Trust
Remain liquid through tokenized representations like lstBTC (Liquid Staked Bitcoin)
These mechanics form the foundation for structured BTC yield solutions that can be packaged into ETFs, ETPs, and other institutional-grade products.
Case Study: Valour’s Yield-Bearing BTC ETP
Valour, a subsidiary of DeFi Technologies, launched the world’s first Bitcoin ETP that earns yield via Core.
5.65% APY
Fully compliant
Custody through BitGo
Yield powered by Core’s Dual Staking
Since launch, the ETP has delivered consistent returns and proved that Bitcoin exposure and on-chain yield can coexist within a fully regulated framework. This model proves that Bitcoin exposure and real returns don’t have to be mutually exclusive. With Core, both are possible—and scalable.
How Structured Products Can Integrate Core
Whether it’s an ETF, ETP, or a custom structured note, Core’s infrastructure supports:
✅ BTC-based principal preservation
✅ Yield enhancements through staking rewards
✅ Liquidity via lstBTC or internal redemption models
✅ Transparent, on-chain tracking of rewards and validator participation
As Bitcoin-backed structured products grow in popularity, the demand for BTC yield solutions that meet regulatory standards is accelerating. Core’s infrastructure delivers the missing piece—yield generation built for Bitcoin ETFs, crypto ETPs, and institutional portfolios.
Bitcoin Yield Products Are Reshaping the Structured Finance Landscape
With the rise of regulated Bitcoin ETFs and the rapid expansion of crypto asset classes, BTC yield products like those powered by Core are redefining how structured finance operates in Web3. From passive ETFs to actively managed ETPs and structured notes, the integration of staking rewards and liquid staked Bitcoin (lstBTC) enables issuers to combine exposure, liquidity, and yield into a single offering.
As institutional appetite for yield-generating crypto products grows, Core provides the foundation for scalable, secure, and compliant innovation in Bitcoin-backed finance.
lstBTC: Liquid Yield for TradFi Portfolios
Core’s lstBTC token, issued via partnerships with Maple Finance, BitGo, Copper, and Hex Trust, offers a turnkey solution:
Deposit BTC → Stay with the custodian
Mint lstBTC → Receive a liquid, tradable token
Earn Yield → Managed by Maple, powered by Core
Redeem Anytime → Receive BTC + yield, 1:1
Structured products using lstBTC can embed liquid Bitcoin yield directly into funds—allowing use in collateral strategies, model portfolios, or multi-asset products.
Why This Matters
The next generation of Bitcoin financial products won’t just offer exposure—they’ll offer performance.
With Core:
Bitcoin becomes productive
Custodians stay relevant
ETFs and ETPs become capital efficient
Regulated, on-chain yield is now possible
This is how staking transforms not just portfolios—but the very design of crypto-native structured products.
Ready to build yield-powered Bitcoin products?
🔗 Learn more: coredao.org
📩 Institutional inquiries: [email protected]
📘 Documentation: docs.coredao.org
FAQ: BTC Yield + ETF Integration
Q: Can ETFs use staking yield without custody risk?
A: Yes. Core’s Self-Custodial Staking enables BTC yield without removing assets from institutional custodians.
Q: What’s the best way to embed BTC yield in a fund product?
A: Using lstBTC or a direct Dual Staking model via Core enables APY exposure while preserving liquidity and compliance.
Q: Is this available now?
A: Yes. Valour’s Core-powered ETP is live. Core’s staking infrastructure is trusted by BitGo, Hex Trust, Copper, and Maple Finance.
Want to dive deeper into BTCfi?
Explore tutorials, updates, and deep dives on Core’s blog and Core Academy — the easiest way to explore Bitcoin DeFi.
🔗 Core Website | Twitter | Telegram | Discord | YouTube | LinkedIn | Newsletter