Scandinavia’s largest bank, Nordea, has revised its previous stance on cryptocurrencies due to increasing adoption and clearer regulations, announcing that customers will have access to an external Bitcoin exchange-traded product (ETP) starting in December.

The Bitcoin ETP, created by the investment firm CoinShares, is based on Bitcoin (BTC) as its underlying asset, as stated by Nordea on Thursday.

However, the ETP will be available only as an “execution-only offering,” meaning while customers can purchase it, Nordea will not provide any advisory services regarding the investment.

With over $286 billion in assets under management and an estimated customer base exceeding 10 million, this shift marks a significant change in the bank’s policy.

Regulations Drive Policy Change

In 2018, Nordea declared a ban on its employees owning Bitcoin due to fears regarding an unregulated cryptocurrency market. Subsequent earnings reports indicated that the bank had “no risk appetite or direct exposure to virtual currencies.”

The bank’s recent change of heart has been driven by increasing regulatory frameworks and the maturation of the crypto market, particularly highlighting the European Markets in Crypto-Assets Regulation (MiCA).

“Against this background, Nordea remains open-minded to offering products and services to meet our customers’ needs as the environment matures.” — Nordea

Rising Demand for Crypto

In addition to regulatory improvements, the bank recognizes that interest in cryptocurrencies is rising in the Nordic region, further influencing their decision.

“The market for crypto-related investment products has grown rapidly in Europe as institutional and retail investors seek exposure to digital assets within established financial markets.”

As of now, approximately 2.1 million individuals in the Nordic countries own cryptocurrency, which reflects a substantial increase from 1.5 million the previous year. An estimated 28% of survey respondents also indicated plans to acquire crypto within the next decade, potentially raising ownership numbers to 6.4 million by 2035.

Crypto Ownership Trends Ownership of cryptocurrencies in the Nordic regions has been steadily increasing. Source: K33