Danske Bank has started offering Bitcoin and Ethereum exchange-traded products (ETPs) on its trading platform. The move ends the bank’s crypto trading restriction, which began in 2018. Customers can access the products through Danske eBanking and Danske Mobile Banking.
The ETPs provide price exposure without customers holding cryptocurrencies. The bank says the ETPs trade on regulated venues, and investors avoid direct crypto wallet custody. Danske Bank links the rollout to customer demand and stronger European Union regulation. The bank calls the products high-risk and says customers must accept possible large losses.
Danske Bank says customers can now buy listed ETPs that track Bitcoin and Ethereum through the bank’s trading platform. The bank targets investors who place their own trades and do not receive investment advice from Danske Bank. The ETPs sit alongside the platform’s broader lineup, which the bank says includes more than 15,000 securities.
The initial offer covers three products, with two tracking Bitcoin and one tracking Ethereum. Danske Bank says recognized providers issue the ETPs and that the first set includes products from BlackRock and WisdomTree.
Customers can trade the ETPs like other listed products. The bank presents the ETP format as a way to invest without managing private keys or setting up a digital wallet.
Danske Bank says MiFID II rules cover the selected crypto ETPs. It points to disclosure and transparency requirements as key features of listed products. The bank also says the ETP structure can simplify trading and custody compared with holding coins directly, while keeping the exposure linked to crypto market prices.
The bank adds that it restricts access to customers who can trade higher-risk products on its platform. Kerstin Lysholm says the bank applies an appropriateness test before customers can trade the ETPs. The test aims to confirm that customers understand the risks connected to volatile instruments.
Danske Bank repeats its warnings about potential losses. It says crypto-linked investments can move quickly and may not suit many investors. The bank says customers must accept the possibility of significant drawdowns when they choose these products.
Lysholm says customers have asked for a way to include crypto exposure in portfolios through the bank’s platform. She also links the decision to regulatory progress in Europe, including the EU’s Markets in Crypto-Assets Regulation (MiCA).
MiCA entered into force in 2023, and key provisions for crypto-asset services applied from 30 December 2024, which strengthened common standards.
Danske Bank’s earlier policy took a stricter position on crypto. The bank announced in 2018 that it would not allow cryptocurrency trading or crypto-based instruments on its platforms and advised customers to avoid the area. In 2021, the bank kept that restriction in place, even as client interest increased.
Danske Bank says it still does not recommend cryptocurrencies as an asset class. The bank says it does not offer advisory services for cryptocurrency investment products and treats them as opportunistic investments rather than part of a long-term strategy. It says customers should view access to selected crypto ETPs as an execution option on its trading platform, not a recommendation to invest in cryptocurrencies.
Also Read: Bitcoin News Today: Bitcoin Holds Strong Near $117K as SEC Approves First Multi-Crypto ETP