Nordea, the largest bank in Scandinavia, has revised its approach to cryptocurrency amid increased adoption and clearer regulations. The bank announced that customers will have access to an external Bitcoin-linked exchange-traded product (ETP) starting in December.
This Bitcoin ETP, created by the digital asset investment firm CoinShares, uses Bitcoin (BTC) as its underlying asset, Nordea reported on Thursday.
The ETP will be available as an “execution-only offering,” meaning customers can purchase the product without receiving advice from Nordea, the bank clarified.
According to its half-year results published in July, Nordea manages over $286 billion in assets and has an estimated customer base exceeding 10 million individuals.
Regulations Influence Bitcoin Reversal
In 2018, Nordea banned its employees from purchasing and holding Bitcoin, citing concerns about the unregulated nature of the crypto market, and it has mentioned in later earnings reports its “lack of risk appetite or direct exposure to virtual currencies.”
The change in position has stemmed from growing regulations and market maturity, with the bank referencing the European Markets in Crypto-Assets Regulation (MiCA) as a significant factor.
“Nordea has kept a close watch on cryptocurrency trends but adopted a cautious approach due to the unregulated characteristics of crypto-assets and the absence of investor protection and authoritative oversight that marked the rise of digital currencies,” Nordea stated.
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“Given this backdrop, Nordea is open to providing products and services to meet our customers’ needs as the market evolves.”
Demand is Also a Key Factor
Nordea noted that there is an increasing demand for cryptocurrencies in the Nordics, contributing to its decision.
“The market for crypto-related investment products, particularly exchange-traded products with a cryptocurrency as the underlying asset, has expanded rapidly in Europe as both institutional and retail investors seek exposure to digital assets within established financial markets.”
Crypto ownership in the Nordic countries, which includes Denmark, Norway, Sweden, and Finland, stands at about 2.1 million people out of an estimated population of over 28 million, according to the March Nordic crypto adoption survey by digital asset firm K33.
This represents an increase from 1.5 million reported last year. Approximately 28% of all respondents also expressed intentions to purchase crypto within the next decade, which K33 anticipates would elevate ownership to 6.4 million by 2035.
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