Nordea stands out as the largest bank in the Scandinavian area. Over the years, the bank has gradually changed its earlier views on cryptocurrencies. Right now, it aims to offer customers a product that’s
traded on exchanges and tied right to Bitcoin.
This kind of adjustment signals a significant turn in the cryptocurrency space. In a way, it highlights how the industry is slowly fitting into standard financial setups. Regulations and similar aspects are turning out clearer and more reliable these days.
It was the choice of Nordea to provide a Bitcoin ETP, among other things, that signals that the crypto market is gradually becoming more transparent from a regulatory perspective. The European Markets in Crypto-Assets Regulation (MiCA) has been instrumental in setting the industry basis, thus removing issues related to the protection of investors and their supervision by the authorities.
Source: Hedge Think
The mere fact that Nordea has reversed its stance on crypto indicates how crucial it is to have clear regulations that ultimately lead to industry growth.
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Most importantly, the move was funded primarily by the increased demand for crypto-assets in the Nordic region. The Nordic crypto adoption survey by K33 shows that the number of people holding crypto in the region is presently 2.1 million, of which 28% declare that they are very likely to buy crypto in the next ten years. The exploding demand was undoubtedly the main factor in Nordea’s decision to offer a Bitcoin ETP, thus reflecting the bank’s commitment to serving its customers.
Source: K33
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This is a very powerful decision by Nordea in the crypto environment, almost illustrating how digital assets are gradually getting recognized by traditional finance. In essence, by issuing a Bitcoin ETP, the bank is communicating to the whole world that it is willing to innovate and keep its customers happy.
Source: Nordea
The ripple effect of Nordea’s move will, therefore, be huge in the industry and it will definitely extend to the industry beyond crypto, as it is a very powerful move and has a very powerful impact, just to mention the fact that the bank has a customer base of more than 10 million people and more than $286 billion in assets under management.
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The adoption of cryptocurrencies by various parties and regulatory clarity in this area are good indicators for the industry in general. The ripple effect of this move by more institutions and investors entering the market is technology and growth.
Source: Young Platform
As the industry keeps going, it will not be any less than interesting to see the reaction of the other financial institutions to the escalating demand for digital assets.
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