The crypto world is buzzing with the recent launch of a Bitcoin Staking Exchange-Traded Product (ETP) powered by Core DAO on the London Stock Exchange. This move, in partnership with Valour—a subsidiary of DeFi Technologies—lets investors track Bitcoin's price while earning staking rewards through the Core Chain. But here's the exciting part: could this be the stepping stone to full-fledged staking Exchange-Traded Funds (ETFs) for Bitcoin and $CORE?

What’s the Big Deal with This ETP?

Let's break it down. An ETP is like a financial instrument that trades on stock exchanges and mirrors the performance of an underlying asset, in this case, Bitcoin. What makes this one special is the staking twist. Staking, for those new to crypto, is where you lock up your assets to support a blockchain network and earn rewards in return—kind of like earning interest on a savings account.

With Core DAO's ETP, you can stake wrapped Bitcoin without giving up custody of your assets. It uses Bitcoin's CheckLockTimeVerify (CLTV) feature, which is a timelock mechanism to secure your Bitcoin in your own wallet during staking. No need to hand over your keys to anyone else. The yields? They're paid out in $CORE tokens, with an annualized return of around 5.65% as of mid-2024. Plus, there's a minimum lock-up of just 24 hours, making it pretty flexible.

Core DAO sweetens the deal with options like Dual Staking, where you pair your Bitcoin with $CORE tokens to amp up those rewards. They've also rolled out lstBTC, a liquid staking token that keeps your staked Bitcoin tradable and usable as collateral—perfect for keeping your funds working even while staked.

Assets are safely tucked away in cold wallets managed by trusted custodians like BitGo, Copper, or Hex Trust. And with a management fee of 1.9%, it covers the nuts and bolts of the staking process.

ETP vs. ETF: What's the Difference?

You might be wondering, why not just call it an ETF? Well, ETPs and ETFs are cousins, but not identical twins. ETPs are broader and include things like notes or structured products that can pack in fancy features like staking yields. They're popular in Europe because the rules are a bit more flexible.

ETFs, on the other hand, face stricter regulations, especially in the US under laws like the Investment Company Act of 1940. They usually track indexes or baskets of assets with lower fees and are super accessible via brokerage accounts. Spot Bitcoin ETFs, which got the green light from the US SEC in January 2024, have racked up a whopping $136 billion in assets by September 2025—but they don't offer staking perks; they're all about price tracking.

Shifting Core's staking model to an ETF would mean jumping through more hoops, like ensuring top-notch custody and investor protections.

Could Staking ETFs Be Next for Bitcoin and $CORE?

Core DAO thinks so. In a recent post on X, they hinted that staking ETFs are the natural evolution after spot Bitcoin ETFs, opening doors to structured products and bigger derivatives markets.

From a market standpoint, big players like pension funds and wealth managers are hungry for crypto products that spit out yields, similar to traditional bonds or dividends. Bitcoin's proof-of-work system doesn't natively support staking, but Core DAO bridges that gap by letting Bitcoin join its proof-of-stake network for validator rewards.

Tech-wise, Core's setup is solid. The non-custodial approach cuts down on risks, and lstBTC keeps things liquid. An upcoming Fusion upgrade will even boost re-staking across partner chains, making it more ETF-friendly.

Regulations are the wildcard. In the US, the SEC is cautious about stuff like validator penalties (called slashing), centralization, and liquidity during redemptions. But Europe is more open—think the UK's Financial Conduct Authority or Germany's BaFin, which have okayed similar products for Ethereum and even memecoins like Dogecoin.

We've seen progress with Ethereum staking ETFs, like 21Shares' filing in February 2025 and the REX-Osprey launch. If those pave the way, Bitcoin and $CORE could follow suit, especially with Core's growing ecosystem: over 4,800 staked Bitcoin, 19 million unique addresses, and partnerships that scream scalability.

Why This Matters for Meme Token Enthusiasts and Beyond

At Meme Insider, we're all about the fun, viral side of crypto, but innovations like this ETP could spill over into the meme token space. Imagine meme projects on chains like Core offering staking yields through similar products—it could add real utility to those community-driven tokens. For now, this positions $CORE as a key player in blending Bitcoin's security with DeFi yields, potentially attracting more institutional money and stabilizing the market.

If you're into blockchain tech, keep an eye on Core DAO. This ETP isn't just a product; it's a signal that crypto is maturing, blending traditional finance with decentralized perks. Who knows? Staking ETFs might be the next big thing to supercharge your portfolio.

For more details, check out the original article on BSC News.