MMS06

Danske Bank, the largest bank in Denmark by market share, has announced a significant shift in its stance toward digital assets. After banning digital-asset trading in 2018, the bank now allows its clients to invest in Bitcoin and Ethereum through exchange-traded products (ETPs).

This decision marks a major change in policy. For years, the bank warned customers about the risks of cryptocurrencies and prohibited trading on its platforms. However, it stated that rising client demand, along with clearer European regulations, prompted a reassessment of its position.

The new service is available through Danske eBanking and Danske Mobile Banking, but only for self-directed investors, meaning clients must make their own investment decisions without direct advisory support from the bank.

Despite this move, the bank emphasized that it does not endorse digital assets as a long-term investment, reflecting continued caution while still aiming to capture market opportunities.

Kerstin Lysholm, Head of Investment Products & Offering, clarified that providing access to selected digital-asset ETPs does not constitute a recommendation of the asset class. The offered products track the price of Bitcoin and Ethereum, enabling exposure without owning the underlying cryptocurrencies.

This allows investors to avoid opening digital wallets or managing private storage. The ETPs provide simple and convenient exposure to cryptocurrencies while reducing the technical complexity and risks associated with direct ownership, though investors must rely on third-party custodians.

Initially, clients will have access to three carefully selected ETPs—two linked to Bitcoin and one to Ethereum—issued by global asset managers BlackRock and WisdomTree. These products comply with EU financial regulations under MiFID II, designed to enhance investor protection and ensure cost transparency.

The bank believes ETPs represent a safer and more practical approach to gaining exposure to digital assets compared to direct cryptocurrency investments, especially as customer interest has grown steadily in recent years.

Improved regulation in Europe also played a key role in the decision, particularly the introduction of the Markets in Crypto-Assets (MiCA) framework, which provides clearer rules for crypto companies and investors.

Before investing, clients must pass a suitability assessment demonstrating their understanding of the associated risks. Despite offering access, the bank continues to classify digital assets as very high-risk investments and considers them opportunistic rather than part of a long-term investment strategy.

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