“The ETPs give exposure to Bitcoin and Ethereum in an easy and simple manner without investors having to have a digital wallet to store the cryptocurrencies, thus avoiding the inconvenience and risks that may entail,” the bank stated in a release as quoted by Cryptopolitan.
According to Kerstin Lysholm – Head of Investment Products and Services at the bank, the decision was driven by rising customer demand. She explained that the cryptocurrency market has become more regulated in recent years, particularly after the introduction of the European Union’s Markets in Crypto-Assets Regulation (MiCA).
“As cryptocurrencies have become a more common asset class, we are receiving an increasing number of enquiries from customers wanting the option of investing in cryptocurrencies as part of their investment portfolio,” she said as quoted by Cryptopolitan.
According to Cryptopolitan, the bank had earlier adopted a strict position on cryptocurrencies. In 2018, the bank refused to offer or support any form of crypto trading on its platforms. In its report that year, Danske Bank stated that it was generally negative toward cryptocurrencies and strongly advised customers not to invest in them. The bank later reinforced this stance by renewing its internal ban on crypto-related activities in 2021.
Even with the launch of its ETPs, Danske Bank stresses that it does not view cryptocurrencies as a formal asset class. The bank continues to label them as ‘speculative investments’ rather than long-term investment options and has made it clear that it does not provide advisory services for crypto investments.
The products are available exclusively to customers who trade independently, as reported by Ledger Insights, without receiving investment advice from the bank. To access the ETPs, customers must complete a suitability assessment to prove they have sufficient experience and knowledge and they understand the associated risks. These products are regulated under MiFID II guidelines.
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