Danske Bank Launches Crypto ETPs for Customers

By: Eva Baxter

Danske Bank, Denmark's largest financial institution, has lifted its eight-year 'ban' on cryptocurrencies by offering access to Bitcoin and Ethereum exchange-traded products (ETPs) through its eBanking and Mobile Banking platforms. This significant shift comes in response to mounting customer demand and evolved regulatory landscapes, primarily facilitated by the European Union's Markets in Crypto Assets (MiCA) framework.

The move marks a pivotal change in Danske Bank's approach to digital assets, as it now embraces the burgeoning crypto market by enabling its self-directed clients to invest in select ETPs from reputable providers like BlackRock and WisdomTree. This strategic decision highlights the bank's commitment to meeting the diverse investment needs of its substantial customer base spread across Northern Europe.

Initially, customers will have the opportunity to purchase three specific ETPs—two of which track Bitcoin and one that tracks Ethereum. These investment products are governed by the Markets in Financial Instruments Directive II (MiFID II), ensuring investor protection and cost transparency. By offering ETPs, Danske Bank aims to provide a secure and simplified method for its clients to engage with cryptocurrencies, presenting advantages over direct coin holdings such as ease of trading and dependable custody solutions.

This latest offering underscores Danske Bank's adaptability in the face of growing crypto adoption and highlights the financial industry's ongoing evolution to incorporate digital assets into mainstream banking services. Stakeholders anticipate that this move could pave the way for further adoption of similar crypto investment vehicles across Europe, setting a new standard for investor accessibility and digital asset integration in traditional banking.