Danske Bank Opens Crypto ETP Access to Retail Clients

• Danske Bank now allows customers to invest in Bitcoin and Ethereum via regulated ETPs.
• The products fall under MiFID II and align with the EU’s MiCA regulatory framework.
• The bank requires suitability checks and does not provide advisory services for crypto ETPs.

Danske Bank has introduced cryptocurrency-related investment products to its trading platform, allowing customers to gain exposure to Bitcoin and Ethereum through exchange-traded products. The move comes from higher client demand and clearer regulations in Europe.

Danske eBanking and Danske Mobile Banking customers can invest in ETPs, which track both Bitcoin and Ethereum. This is because ETPs are traded on regulated markets and are covered under regulatory regimes such as MiFID II, thereby enhancing investor protection and transparency.

Exposure Without Digital Wallets

Danske Bank designed the offering for self-directed investors who use its trading platform without advisory services. Instead of buying cryptocurrencies directly, customers invest in ETPs that mirror the performance of Bitcoin and Ethereum.

This structure eliminates the need for digital wallets and private key management. Investors avoid custody risks while still participating in crypto price movements. The bank emphasizes ease of trading, faster execution, and secure storage through regulated financial instruments.

Initially, customers gain access to three carefully selected ETPs. Two tracks Bitcoin, while one tracks Ethereum. Leading asset managers BlackRock and WisdomTree provide these products. Danske Bank states it selected recognized providers to enhance credibility and operational reliability.

Demand Meets Regulatory Clarity

According to Danske Bank’s Head of Investment Products & Offering, Kerstin Lysholm, the bank has experienced an increase in inquiries from clients who want exposure to cryptocurrencies. She added that the regime of regulation has substantially improved, particularly under the auspices of the Markets in Crypto-Assets Regulation framework.

In fact, MiCA has further improved supervision for the entire European Union. Added to the MiFID II protection, it offers clearer disclosure standards, transparency of costs, and stronger investor safeguards. The evolution in this regulation seemed to encourage this crypto-linked instrument’s introduction by this bank.

However, Danske Bank does not classify crypto ETPs as core long-term portfolio assets. The bank currently views them as opportunistic investments. It does not provide advisory services for these products and clearly warns about high volatility and potential large losses.

Suitability Assessment Required

Before customers invest, they must complete a suitability assessment. The platform requires users to respond to a series of questions regarding their experience and knowledge. The purpose of this is to ensure that users fully understand the associated risks and nature of cryptocurrency ETPs.

This structure is consistent with the MiFID II requirements. Additionally, this process aligns with the bank’s conservative policy. Although the bank allows access to such units, it does not actively promote them as an investment option.

This move will further augment the trading platform of Danske Bank, which has over 15,000 securities to trade. This is because the bank has opted to include crypto ETPs in mainstream investment channels without taking into custody tokens.

Banks and traditional financial institutions across Europe remain watchful over the demand-supply side of cryptocurrency. There seems to be a move from traditional financial institutions to provide exposure rather than ownership.

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