Denmark’s Danske Bank Reverses 8-Year Crypto Ban, Opens Doors to Bitcoin and Ethereum ETPs

Core Viewpoint - Danske Bank has lifted its eight-year ban on cryptocurrencies, allowing customers to invest in Bitcoin and Ethereum exchange-traded products (ETPs), marking a significant shift in institutional crypto adoption [1][8]. Group 1: Policy Change - Danske Bank now permits investments in Bitcoin and Ethereum ETPs through its online banking platforms, reflecting a major policy shift after nearly a decade of avoiding cryptocurrencies [1][2]. - The decision to lift the ban comes after the bank previously labeled cryptocurrencies as speculative and unsuitable for most investors in 2018 and reaffirmed this stance in 2021 [3]. Group 2: Client Demand and Market Trends - The bank's move is driven by increasing client demand for regulated crypto-backed investment products, as more investors seek to diversify their portfolios with crypto exposure [2][4]. - The head of Investment products at Danske Bank noted a steady rise in inquiries about cryptocurrency investments among clients, influenced by changing customer behavior [5]. Group 3: Regulatory Influence - Improved regulation in Europe, particularly the EU Markets in Crypto-Assets (MiCA) regulation, has contributed to the increased acceptability of digital assets within the mainstream financial sector [6]. - Danske Bank emphasizes that while it offers ETPs, it does not provide advisory services on digital assets, considering them high risk and targeting self-directed investors who understand the associated volatility [7][8].