Nordea, the largest bank in Scandinavia, has changed its position on cryptocurrency amid increasing adoption and clearer regulations, announcing that starting in December, customers will have access to an external Bitcoin-linked exchange-traded product (ETP).
The Bitcoin ETP, created by digital asset investment firm CoinShares, is underpinned by Bitcoin (BTC), as Nordea revealed on Thursday.
This ETP will be available as an “execution-only offering,” meaning that while customers can purchase it, Nordea will not provide any advisory services related to it,” the bank stated.
With over $286 billion in assets under management, according to its half-year results released in July, Nordea boasts an estimated customer base exceeding 10 million.
Regulatory Influences on the Bitcoin Shift
In 2018, Nordea had banned its employees from purchasing and holding Bitcoin due to concerns about the unregulated nature of the crypto market, and subsequent earnings reports reflected that the bank had “no risk appetite or direct exposure to virtual currencies.”
The change in stance is directly attributed to increasing regulations and market maturity, with the bank highlighting the European Markets in Crypto-Assets Regulation (MiCA) as a pivotal influence.
“Nordea has been closely observing cryptocurrency trends but has taken a cautious approach due to the unregulated environment of crypto-assets and the absence of investor protection and authoritative oversight that characterized the rise of digital currencies,” the bank noted.
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“In light of this context, Nordea is open to providing products and services that align with our customers’ needs as the market evolves.”
Consideration of Demand
Alongside regulatory factors, Nordea mentioned that the increasing demand for cryptocurrencies throughout the Nordics played a significant role in this decision.
“The market for crypto-related investment products, particularly exchange-traded products with a cryptocurrency as their underlying asset, has rapidly expanded in Europe as both institutional and retail investors seek exposure to digital assets within established financial markets.”
Currently, crypto ownership in the Nordic regions—comprising Denmark, Norway, Sweden, and Finland—stands at about 2.1 million individuals out of a total population surpassing 28 million, according to the March Nordic crypto adoption survey by digital asset firm K33.
This is an increase from the 1.5 million noted last year. Roughly 28% of respondents indicated plans to acquire crypto within the next decade, suggesting an increase in ownership to 6.4 million individuals by 2035.
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