The biggest bank in Denmark, Danske, is rolling out cryptocurrency-linked investment options, giving customers direct access to Bitcoin and Ethereum exchange-traded products (ETPs) for the first time.
According to the Wednesday announcement, customers using the bank’s eBanking and Mobile Banking platforms will be able to access Bitcoin and Ethereum exposure through ETPs from BlackRock and WisdomTree, eliminating the need to directly own or store the digital assets.
Danske said the move is driven by rising customer demand and is aimed at self-directed investors who use the bank’s trading platform without seeking investment advice.
“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,” Danske Bank’s Head of Investment Products & Offering, Kerstin Lysholm, stated.
Lysholm added that regulation had “generally increased confidence in cryptocurrencies” and the bank believes “the time is ripe” to offer these products to clients willing to accept the “very high risks” involved.
A Major Shift
The launch of cryptocurrency-related products marks a turnaround Danske Bank, which had previously ruled out providing any crypto services.
Back in 2018, the Danish bank said it was overall “negative” toward cryptocurrencies and banned trading in them and related instruments on its own platforms, cautioning clients about risks including lack of transparency, regulatory uncertainty, high volatility, and potential for financial crime.
In 2021, Danske said it would not provide cryptocurrency services directly to its customers but clarified that it would not block transactions originating from crypto platforms.
Lysholm remarked that the cryptocurrency market has become “better regulated” in recent years in the wake of the European Union’s Markets in Crypto Assets (MiCA) regime.
While Danske is now allowing customers to buy Bitcoin and Ethereum ETPs, the bank emphasized that it continues to regard cryptocurrencies as “opportunistic investments” rather than core components of a long-term portfolio.
“Kerstin Lysholm therefore also emphasises that access to selected cryptocurrency ETPs on Danske Bank’s trading platform should not be seen as a recommendation of the asset class from Danske Bank,” the press release concludes.
Source: https://zycrypto.com/denmarks-biggest-bank-danske-opens-bitcoin-and-ether-etps-to-clients-reversing-8-years-of-crypto-resistance/
