Customers can now trade Bitcoin and Ethereum through Danske Bank’s platform without holding digital wallets.
Crypto ETPs simplify investing but come with high risk; they are meant for opportunistic, not long-term, portfolios.
Improved EU rules and growing demand make now the right time for regulated crypto investment options at Danske Bank.
Danske Bank is giving its customers direct access to cryptocurrency investments, a move that signals growing mainstream acceptance. Customers can now invest in Bitcoin and Ethereum through Danske Bank’s trading platform using Danske eBanking and Mobile Banking.
As per the announcement, the bank offers exchange-traded products (ETPs) that track the two largest cryptocurrencies, giving the investor exposure to the asset without the need to own any digital wallets. This development is in line with the increasing demand for regulated options for investing in cryptocurrencies and the strengthened regulations for the EU market under MiFID II.
Apart from the convenience offered, the ETPs make investing in cryptocurrency easy for the intended users who may not need the complexities that come with cryptocurrency wallets. For instance, the intended user can invest directly in the Bitcoin or Ethereum ETP by the trading platform.
However, Danske Bank also warns that the cryptocurrencies have an associated risk of high volatility, which could lead to huge losses. The bank, therefore, views the products as opportunistic rather than investment products.
Meeting Demand Amid Growing Regulation
The bank’s move comes as cryptocurrencies gain traction among retail and institutional investors. “As cryptocurrencies have become a more common asset class, we are receiving an increasing number of inquiries from customers wanting the option of investing in cryptocurrencies as part of their investment portfolio,” said Kerstin Lysholm, Head of Investment Products & Offering at Danske Bank.
Moreover, regulatory frameworks have improved over recent years. EU regulations, including MiCA, provide clearer rules, boosting investor confidence and making now an appropriate time to offer crypto investment products.
Additionally, the new offering strengthens Danske Bank’s trading platform, which already allows access to more than 15,000 securities. The bank clarifies that it does not provide advisory services for cryptocurrency investments. Hence, customers should not view these ETPs as formal recommendations but rather as optional opportunities for those willing to accept high risks.
The cryptocurrency ETPs target investors who like to invest independently. In that way, customers can diversify a portfolio with Bitcoin or Ethereum without the technical headache associated with managing private keys. The move also reflects broader ambitions from Danske Bank to expand its digital investment proposition based on strict regulatory requirements.
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