Danske Bank’s customers will for the first time be able to gain exposure to the two most common cryptocurrencies, Bitcoin and Ethereum, using Danske eBanking and Danske Mobile Banking. Investments will be made via ETPs (exchange traded products), which are listed products that invest in the two cryptocurrencies.

The new investment option targets customers who invest using our trading platform without receiving any investment advice. The ETPs give exposure to Bitcoin and Ethereum in an easy and simple manner without investors having to have a digital wallet to store the cryptocurrencies, thus avoiding the inconvenience and risks that may entail.

The new investment option further strengthens Danske Bank’s position as a bank with a leading trading platform that makes it possible for customers to invest in more than 15,000 different securities.

Increasing demand and improved regulation
The new option meets an increasing customer demand and goes hand in hand with improved regulation in the area.

“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. Moreover, the area has become better regulated in recent years as a result of, for instance, the EU’s MiCA Regulation (Markets in Crypto-Assets Regulation), and this has generally increased confidence in cryptocurrencies. On balance, we have therefore come to the conclusion that the time is ripe for making cryptocurrency investment products available to the customers who want to invest in the asset class and who accept the very high risks involved in cryptocurrency-related investments,” says Kerstin Lysholm, Head of Investment Products & Offering at Danske Bank.

Danske Bank does not offer advisory services for cryptocurrency investment products at present as we currently consider them to be opportunistic investments rather than part of a long-term portfolio strategy. Kerstin Lysholm therefore also emphasises that access to selected cryptocurrency ETPs on Danske Bank’s trading platform should not be seen as a recommendation of the asset class from Danske Bank.

Carefully selected investment products
To begin with, Danske Bank’s customers will have access to investments in three carefully selected ETPs, with two of these tracking the performance of Bitcoin and one tracking the performance of Ethereum.

“It is always important for us that our customers can invest in a good and proper manner. 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. Furthermore, the selected ETPs are offered by the recognised international asset managers BlackRock and Wisdomtree in which we have great confidence, and the investment products are covered by MiFID II regulations which ensure enhanced investor protection and transparency in terms of, for example, investors’ ongoging costs,” says Kerstin Lysholm.

As part of the investor protection, Danske Bank’s customers will not be able to invest in the ETPs using the trading platform until an assessment has been made to determine whether the products are suitable for them. This means that customers, prior to investing, are required to answer several questions to ensure that they have sufficient experience and knowledge to understand the risks and characteristics of investing in cryptocurrency ETPs.