Denmark’s Largest Bank Adds Bitcoin, Ethereum ETPs, But Warns Of ‘High Risk’
Danske Bank has began providing Bitcoin and Ethereum ETPs to clients for the primary time, however the financial institution nonetheless doesn’t endorse crypto property.
Danske Bank Now Offers Bitcoin & Ethereum ETPs
As introduced in a press release, Danske Bank’s clients can now put money into some exchange-traded products (ETPs) monitoring the 2 largest cryptocurrencies: Bitcoin and Ethereum.
The financial institution stated that the brand new choice is a response to growing consumer demand for digital property and improved regulation associated to the sector. Kerstin Lysholm, head of funding merchandise & providing at Danske Bank, famous:
As cryptocurrencies have change into a extra frequent asset class, we’re receiving an growing variety of enquiries from clients wanting the choice of investing in cryptocurrencies as a part of their funding portfolio.
Headquartered in Copenhagen, Danske Bank is the biggest financial institution in Denmark with 3.75 trillion DKK (round $596 billion) in property. Previously, the financial institution took a stalwart stance in opposition to providing cryptocurrency buying and selling, however the newest transfer suggests it’s lastly opening as much as the market.
Though, Danske Bank nonetheless doesn’t supply advisory companies for digital property, labelling them as “opportunistic investments” quite than a part of a long-term portfolio technique. The addition of the brand new Bitcoin and Ethereum funding choice is geared at buyers who use the agency’s buying and selling platform with out receiving any funding recommendation, the financial institution stated.
Investors utilizing the choice will acquire publicity to the cryptocurrencies not by direct holding, however through ETPs, funding automobiles that permit for oblique publicity. This signifies that merchants gained’t have to have interaction with blockchain elements like wallets and exchanges.
Lysholm emphasised that entry to digital asset ETPs on the corporate’s buying and selling platform shouldn’t be taken as a suggestion of cryptocurrencies from Danske Bank. The financial institution warned that the asset class includes “high danger” and should end in massive losses.
The transfer to permit Bitcoin and Ethereum ETPs isn’t the one one associated to the cryptocurrency sector that Danske Bank has made not too long ago. In September, the financial institution joined arms with eight different main European banks to develop a shared euro-pegged stablecoin.
Stablecoins are cryptocurrencies which have their value pegged to a fiat forex. Currently, the area is closely dominated by the USD-based tokens, and the consortium of Danske Bank and different European banks plans to problem this hegemony.
Since the preliminary announcement, the consortium has step by step added extra members, now involving a complete of twelve European monetary establishments. The banks have arrange an organization known as Qivalis in Amsterdam to deal with the issuance of the stablecoin.
While the precise launch date of the token is unknown, the consortium has stated it goals to make a industrial launch within the second half of 2026.
BTC Price
At the time of writing, Bitcoin is floating round $66,700, down greater than 8% within the final seven days.
