Danske Bank Reverses Crypto Policy, Cites Regulation Progress

Danske Bank introduces access to Bitcoin and Ethereum ETPs while maintaining a cautious risk stance.

Danske Bank has reopened its doors to crypto-linked investments after years of caution. Denmark’s largest lender will now allow clients to gain exposure to cryptocurrencies like Bitcoin and Ethereum through ETF products. The decision points to a shift in stance as European regulation becomes clearer. 

Regulated Bitcoin and Ethereum Products Added by Danske Bank

Denmark’s largest bank, Danske Bank, now allows customers using Danske eBanking and Danske Mobile Banking to invest in Bitcoin and Ethereum ETPs. Products are listed securities that track the prices of both cryptocurrencies. However, investors are not allowed to directly hold digital assets.

Notably, ETPs eliminate the need for a private wallet or direct token custody. The bank says the structure reduces operational complexity and certain storage-related risks. Access is available through a trading platform without investment advice.

The new policy targets only customers who trade independently on the platform. No advisory services will be provided for crypto-related products as the bank continues to classify cryptocurrencies as opportunistic investments.

In addition, Danske Bank expands its product range, strengthening its position in the banking sector. The platform now offers more than 15,000 securities for trading. Management says the move aligns with client interest and market development.

Banking Sector Gradually Embraces Crypto Under Clearer Rules

Kerstin Lysholm, Head of Investment Products & Offering at Danske Bank, said client inquiries have increased as cryptocurrencies gained wider acceptance. She pointed to stronger regulatory frameworks as another factor behind the decision.

According to Kerstin, the EU’s Markets in Crypto-Assets Regulation (MiCA) has brought clearer rules for industry participants. Improved oversight has strengthened confidence among financial institutions and retail investors. 

Furthermore, Danske Bank stresses that the availability of ETPs does not amount to a recommendation. The bank maintains that crypto assets are volatile and carry significant risk. As such, investors must accept the risk of significant losses.

Denmark’s banking sector has gradually become more open to crypto developments in recent years. Also, other traditional banks across Europe have taken similar steps. Clearer regulation has made it easier for institutions to enter the market.

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