Danske Bank Launches Bitcoin and Ethereum ETPs, Ending Eight-Year Crypto Ban

Danske Bank Embraces Crypto: Launches Bitcoin and Ethereum ETPs After Eight-Year Ban

In a groundbreaking shift, Danske Bank has announced the launch of Bitcoin and Ethereum exchange-traded product (ETP) investment services for its online and mobile banking customers, effectively ending an eight-year ban on crypto-related services. This move marks a significant pivot for the bank, which has historically maintained a skeptical stance towards cryptocurrencies.

The newly introduced ETPs allow investors to gain exposure to Bitcoin and Ethereum without the need for a digital wallet, thereby sidestepping the complexities and risks associated with direct cryptocurrency ownership. “The ETPs provide an easy and simple way for our customers to invest in these digital assets,” the bank stated in its official release.

Kerstin Lysholm, Head of Investment Products and Services at Danske Bank, emphasized that this decision is a direct response to increasing customer demand. “As cryptocurrencies have become a more common asset class, we are receiving an increasing number of inquiries from customers wanting the option of investing in cryptocurrencies as part of their investment portfolio,” she noted. Lysholm also pointed out that the crypto market has become “better regulated” in recent years, particularly with the implementation of the EU’s Markets in Crypto-Assets Regulation (MiCA).

Despite this new offering, Danske Bank remains cautious about cryptocurrencies. The bank continues to classify them as “speculative investments” and does not recommend them as a viable asset class. In fact, it does not provide advisory services for crypto investments. Customers wishing to invest in the ETPs must pass an “appropriateness test” to ensure they understand the associated risks.

Historically, Danske Bank has been critical of cryptocurrencies. In 2018, the bank explicitly advised customers against investing in digital currencies, a stance it reaffirmed with a renewed internal ban in 2021. However, the bank has recently increased its exposure to the crypto sector by acquiring 13,840 shares of MicroStrategy (MSTR), bringing its total holdings to 132,746 shares valued at approximately $17.6 million.

The move comes at a time when interest in cryptocurrencies is on the rise in Denmark. According to data from Triple-A, there were 70,605 crypto owners in Denmark as of 2024, representing about 1.2% of the population. However, the country ranks 84th out of 151 nations in terms of crypto adoption, as measured by on-chain value received by both centralized and decentralized platforms.

In addition to Danske Bank’s new services, Denmark is preparing to implement a controversial tax regime for crypto traders. Starting in 2026, unrealized gains on cryptocurrencies will be taxed, a shift that has drawn criticism for its potential to create liquidity challenges for investors. Currently, crypto profits are taxed as part of an individual’s total income, which can lead to a high marginal tax rate.

The Danish Tax Law Council has recommended a move toward “inventory taxation,” treating cryptocurrencies similarly to stocks and bonds. This would impose an annual tax of up to 42% on both realized and unrealized gains, a proposal that has yet to be passed into law.

As Danske Bank takes this significant step into the world of cryptocurrencies, the financial landscape in Denmark continues to evolve, raising questions about the future of digital assets and their regulation in the country.