Danske Bank Offers Bitcoin & Ethereum ETPs, But Doesn’t Recommend Crypto

The introduction of Bitcoin and Ethereum ETPs on Danske Bank’s eBanking and Mobile Banking platforms represents a complete reversal of the lender’s previous stance. In 2018, the bank was unequivocal, stating it was “negative towards cryptocurrencies” and strongly recommended customers avoid them, even renewing an internal ban as recently as 2021. According to Kerstin Lysholm, Head of Investment Products & Offering, the shift is a direct response to persistent customer inquiries. “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,” Lysholm explained in the bank’s press release.

This new offering allows customers to gain exposure to the price movements of Bitcoin and Ethereum without the technical complexities of holding the underlying assets. The service is specifically targeted at self-directed investors who use the bank’s trading platform without receiving formal investment advice. The decision underscores a broader trend of traditional financial institutions cautiously dipping their toes into digital assets, compelled by client interest despite internal reservations about the asset class’s inherent volatility and risk profile.

Danske Bank attributes its change of heart primarily to the maturation of regulatory frameworks, specifically highlighting the European Union’s Markets in Crypto-Assets (MiCA) regulation. Lysholm noted that the crypto market has become “better regulated” in recent years, a development she says has “increased confidence in digital assets.” She told Decrypt that MiCA has “created a more mature market with enhanced investor protection, transparency, and market integrity,” enabling the bank to offer “selected and regulated investment products.”

Despite this regulatory progress, Danske Bank’s embrace of crypto is heavily qualified. The bank’s press release concludes with a clear disclaimer: access to these ETPs “should not be seen as a recommendation of the asset class from Danske Bank.” The institution classifies cryptocurrencies as “opportunistic investments” unsuitable for long-term portfolios and, consequently, does not offer advisory services for them. Lysholm emphasized that the bank is “not moving away from our previous cautious approach” but is now providing a “safer and more transparent manner” to invest via regulated products.

To access the Bitcoin and Ethereum ETPs, customers must first pass an “appropriateness test” designed to ensure they comprehend the high risks involved. “It is ultimately the customers’ own choice to invest, and we make it clear that these are opportunistic investments with high volatility,” Lysholm stated. This layered approach—offering access while simultaneously discouraging it—illustrates the delicate balancing act traditional banks face as they navigate rising demand against deep-seated risk management concerns.

Danske Bank’s new service launches in a Danish market where cryptocurrency adoption remains relatively niche. Data from Triple-A indicates there were approximately 70,605 cryptocurrency owners in Denmark in 2024, representing just 1.2% of the total population. Furthermore, the 2025 Chainalysis Geography of Crypto report ranked Denmark 84th out of 151 countries for overall cryptocurrency adoption, a metric based on on-chain value received by various platforms.

This context makes Danske Bank’s move particularly notable. As the country’s largest bank, its actions serve as a bellwether for the mainstream financial sector’s engagement with digital assets in Scandinavia. Lysholm framed the offering as a “natural step” in catering to diverse investor needs in an evolving economy. By providing regulated ETPs, Danske Bank is attempting to capture demand from that small but growing segment of the population seeking crypto exposure, while insulating itself and its clients through stringent warnings and regulatory safeguards. The bank’s journey from outright prohibition to cautious, regulated provision mirrors the broader trajectory of crypto’s integration into the traditional financial system.