Danske Bank has started offering Bitcoin and Ethereum ETPs to customers for the first time, but the bank still doesn’t endorse crypto assets.
Danske Bank Now Offers Bitcoin & Ethereum ETPs
As announced in a press release, Danske Bank’s customers can now invest in some exchange-traded products (ETPs) tracking the two largest cryptocurrencies: Bitcoin and Ethereum.
The bank said that the new option is a response to increasing user demand for digital assets and improved regulation related to the sector. Kerstin Lysholm, head of investment products & offering at Danske Bank, noted:
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.
Headquartered in Copenhagen, Danske Bank is the largest bank in Denmark with 3.75 trillion DKK (around $596 billion) in assets. Previously, the bank took a stalwart stance against offering cryptocurrency trading, but the latest move suggests it’s finally opening up to the market.
Though, Danske Bank still doesn’t offer advisory services for digital assets, labelling them as “opportunistic investments” rather than part of a long-term portfolio strategy. The addition of the new Bitcoin and Ethereum investment option is geared at investors who use the firm’s trading platform without receiving any investment advice, the bank said.
Investors using the option will gain exposure to the cryptocurrencies not by direct holding, but via ETPs, investment vehicles that allow for indirect exposure. This means that traders won’t have to engage with blockchain components like wallets and exchanges.
Lysholm emphasized that access to digital asset ETPs on the company’s trading platform shouldn’t be taken as a recommendation of cryptocurrencies from Danske Bank. The bank warned that the asset class involves “high risk” and may result in large losses.
The move to allow Bitcoin and Ethereum ETPs isn’t the only one related to the cryptocurrency sector that Danske Bank has made recently. In September, the bank joined hands with eight other major European banks to develop a shared euro-pegged stablecoin.
Stablecoins are cryptocurrencies that have their price pegged to a fiat currency. Currently, the space is heavily dominated by the USD-based tokens, and the consortium of Danske Bank and other European banks plans to challenge this hegemony.
The ten largest stablecoins by market cap are all coins tied to the USD | Source: CoinMarketCap
Since the initial announcement, the consortium has gradually added more members, now involving a total of twelve European financial institutions. The banks have set up a company called Qivalis in Amsterdam to handle the issuance of the stablecoin.
While the exact launch date of the token is unknown, the consortium has said it aims to make a commercial release in the second half of 2026.
BTC Price
At the time of writing, Bitcoin is floating around $66,700, down more than 8% in the last seven days.
The price of the coin seems to have plunged over the last few days | Source: BTCUSDT on TradingView
Featured image from Dall-E, chart from TradingView.com
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