Danske Bank Opens the Door for Crypto Investment Products, Ending Digital Asset Ban
One of Denmark’s largest banks appears to be softening its stance on crypto by giving its customers access to some digital asset products.
Danske Bank will let its customers invest in Bitcoin and Ether exchange-traded
products (ETPs) through its desktop and mobile apps. Customers can invest in two bitcoin ETPs and one ether ETP selected by the bank. The three selected ETPs are
managed by investment giants BlackRock and WisdomTree, the bank said in a
statement on Wednesday.
A 'suitable solution'
"For customers wanting to invest in cryptocurrencies, we regard ETPs as a suitable solution that offers clear advantages compared to direct investments in cryptocurrencies – for instance in relation to how easy it is to trade the assets and how quickly you can do so, not to mention how securely they are stored," said Kerstin Lysholm, Head of Investment Products and Offering at Danske Bank.
Danske bank is following in the footsteps of other crypto-sceptic banks that have recently softened their attitude towards digital currencies. Last week, ING said its clients can now trade 11 crypto ETPs offered by VanEck.
European banks offering exposure
The introduction of the European Union’s Markets in Crypto Assets (MiCA) regime and the popularity of crypto ETPs among investors who don't want to buy the assets directly has led an increasing number of banks to finally provide clients with some exposure to some digital assets. Otherwise, the banks would continue to lose out to firms created specifically to focus on crypto.
ETPs on the rise
Crypto ETPs have been gaining popularity as it allows holders indirect access to digital assets, while minimizing downside risks. The products are also lucrative for banks as they can partner with asset managers and get a cut for the ETPs bought from their platforms.
European asset managers initially only introduced ETPs linked to the top two
cryptocurrencies, bitcoin and ether, but the demand of these products has forced them to venture beyond bitcoin.
ETP providers in Europe now offer over 349 products with exposure to large-cap tokens, such as Solana, Cardano and memecoins like Dogecoin. European ETPs hold assets under management of over $13bn, according to data from ETFbook.