Danske Bank’s New Investment Options
Danske Bank, the largest financial institution in Denmark, has taken a significant step by allowing clients to invest in exchange-traded products (ETPs) linked to Bitcoin and Ethereum. This move comes amidst an increasing demand from customers to include cryptocurrencies in their investment portfolios, although the bank stops short of endorsing these digital currencies as a viable asset class.
Accessing Cryptocurrency Investments
Clients using Danske’s eBanking and mobile banking services will now be able to engage with Bitcoin and Ethereum through the newly available ETPs, which do not require direct ownership of the cryptocurrencies. Kerstin Lysholm, who oversees Investment Products & Offering at Danske Bank, noted that this decision responds to a rising number of requests for cryptocurrency investment options from proactive investors on their trading platform.
Shift in Stance on Cryptocurrencies
This development marks a notable shift from Danske Bank’s previous stance. In 2018, the bank firmly opposed any cryptocurrency trading, advising customers against investing in digital currencies and reinforcing its internal ban on crypto until 2021. Despite this new offering, Lysholm made it explicitly clear that Danske Bank does not advocate for investing in cryptocurrencies, stating it views them as high-risk opportunities rather than stable investment assets for the long term.
Regulatory Improvements and Investor Protection
Lysholm acknowledged that regulatory improvements in the cryptocurrency sector over recent years, particularly due to the EU’s Markets in Crypto-Assets Regulation, have fostered greater trust in digital assets. She reflected on the evolving landscape of cryptocurrencies, admiring the development of a more regulated and mature market that emphasizes investor protection and transparency. This backdrop has prompted Danske to introduce select, regulated investment options to customers interested in entering the crypto space.
Risk Awareness and Client Responsibility
Crucially, access to these ETPs will be granted only after customers pass an “appropriateness test,” ensuring they are aware of the associated risks. Lysholm reinforced that investment decisions ultimately lie with the clients, reiterating that they are engaging with “opportunistic investments” marked by high volatility.
Cryptocurrency Ownership in Denmark
As of 2024, Denmark is home to about 70,605 cryptocurrency owners, comprising roughly 1.2% of the nation’s population. Nonetheless, in terms of cryptocurrency adoption, Denmark ranks 84th out of 151 countries, based on an analysis by Chainalysis that measured on-chain value received by various platforms.
