Crypto Investment Strategies in Denmark 2025 – With Tax Optimization
Investing in crypto currencies in Denmark comes with specific complications due to the speculative nature of the asset and local tax regulations. To minimize taxation and simplify the accounting and reporting, we look into different crypto investment strategies.
Table of Contents
In Denmark, cryptocurrency is in most cases treated as a speculative asset rather than a currency, therefore subject to very specific taxation rules. Those rules are complex and unfavorable for a typical investor, which led us to explore alternative crypto investments.
In this post we will cover the following crypto investment strategies:
- Direct purchase of crypto
- Crypto Exchange Trade Products (ETPs)
- Indirect crypto investment via blockchain companies
- Sector crypto investments via blockchain ETFs
First let’s look into how Danish taxation works for the direct purchase of cryptocurrencies.
Direct Purchase of Crypto
Buying crypto directly involves acquiring the cryptocurrency through exchanges and storing it in a digital wallet. This give you full control and ownership over your coins, which allows you to explore the full extent of the crypto environment and networks, including engaging with decentralized finance (DeFi) platforms.
However, this also bring personal responsibilities, such as securing your assets in your digital wallet, avoiding scams and digital theft. Besides all the complication of dealing with a completely new asset, individual investors in Denmark are also responsible for detailed accounting and reporting of gains and losses to SKAT.
Understanding Crypto Taxation
Investment or Speculation?
As a general rule, investing in crypto is considered speculation, since they are purchased with the intention to make a profit. If you can prove that your crypto holdings were acquired for long-term investment rather than speculation, gains may not be taxed. However, this scenario is highly unlikely. It depends on individual circumstances and prior rulings from SKAT (the Danish Tax Agency). As a baseline, speculation is assumed and crypto investments are subject to taxes on capital gains.
Capital gains tax
Gains from cryptocurrency trading are typically subject to personal income tax and can go up to 52% for those at the top SKAT. Personal income tax is around 37% for those not on top SKAT. The specific tax rate can vary based on personal income level.
Losses are deductible, but to a maximum of 26%. This means that taxation is asymmetric. Taxes from losses will not be able to fully compensate taxes from gains (which would be possible for stocks or ETFs). Moreover, gains and losses need to be reported in separate sections of your annual statement.
There is an exception for offsetting losses and gains. It is very simple (and limited)! When buying the same type of crypto and making sales without additional purchases, being all transactions within the same income year, gains or losses can be calculated as a net result.
As of October 2024, the Danish Tax Law Council has proposed a bill to tax unrealized gains on crypto assets, including crypto, at a rate of 42% (the top capital income rate). If enacted, this legislation would take effect on January 1, 2026, and would require investors to pay taxes annually on the market value of their holdings, regardless of whether the assets have been sold.
It’s important to note that tax laws are subject to change, and the proposed taxation on unrealized gains has not yet been implemented. Investors should stay informed about legislative developments and consult with a tax professional to understand the current and future tax implications of investing in crypto in Denmark.
Trading expenses
Expenses directly related to purchase or sales of crypto can be deducted. However, expenses related to internally transfers, e.g., between your digital wallet and crypto broker are not deductible.
Mining & Staking
Gain from mining or staking are considered taxable income and will be taxed as personal income.
Use a crypto-friendly pension scheme
Consider investing through a self-directed pension scheme (Ratepension or Alderopsparing) if possible. Some pension providers offer crypto exposure, and pension gains are taxed at lower rates than personal income.
Report accurately and use deductions
SKAT has been actively tracking crypto transactions, including data from exchanges. Keeping detailed records and reporting correctly can prevent issues and ensure you claim any eligible deductions.
To make sure you don’t miss any of the Danish tax rules and map all your transactions across crypto brokers, networks and wallets, we recommend using Koinly to create your tax report.
Alternative Crypto Investment Strategies
In order to simplify and minimize taxation, investing in crypto in Denmark can be approached through alternative strategies with focus on various financial products usually available at the main Danish brokers (Nordnet and Saxo)
Crypto Exchange Traded Products (ETPs)
Exchange Traded Products or ETPs, are derivatives and considered complex instruments subject to higher volatility than ETFs. In Denmark it is possible to invest in crypto ETPs where you can gain exposure to the most popular digital coins including Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and Cardano (ADA), among others. Those products are designed to follow the performance of crytpo 1:1 and are subject to high management fees (1.5% – 2.5%).
Taxation of ETPs
Currently gains from crypto ETPs are taxed as capital income on realized or yearly on unrealized gains. Capital income taxes start at 37% and, for annual profits are above 52,400 kr, taxes go up to 42%.
Similar to direct crypto purchases, the taxation of crypto Exchange-Traded Products (ETPs) can also be influenced by recent legislative developments.
| Pros | Cons |
|---|---|
| Ease of access: Investors can buy and sell crypto ETPs through regular brokerage accounts without managing digital wallets | Management fees: ETPs charge high fees that can reduce overall returns |
| Regulatory oversight: ETPs are subject to financial regulations, potentially offering greater security and transparency | No direct ownership: Investors do not own the underlying digital coin, limiting participation in the blockchain network |
Indirect Crypto Investment via Blockchain Companies
Another option is to invest in companies that are strongly involved in blockchain technology or have significant digital coin holdings. Examples of those companies are Coinbase (COIN) which is a large cryptocurrency broker and MicroStrategy (MSTR) which holds large amounts of bitcoin as part of its strategy.
Taxation of blockchain company stocks
By investing directly on the stocks of blockchain companies, investors will be subject to the Danish stock taxation and it will vary depending on which account they hold those assets.
| # | Company | Symbol | BTC position | % of BTC Supply |
|---|---|---|---|---|
| 1 | MicroStrategy Inc. | MSTR | 444,262 | 2.12% |
| 2 | Marathon Digital Holdings | MARA | 26,842 | 0.13% |
| 3 | Galaxy Digital Holdings | GLXY | 15,449 | 0.07% |
| 4 | Tesla, Inc. | TSLA | 11,509 | 0.06% |
| 5 | Coinbase Global, Inc | COIN | 9,183 | 0.04% |
| 6 | Hut 8 Mining Corp | HUT | 9,102 | 0.04% |
| 7 | Riot Platforms, Inc | RIOT | 8,490 | 0.04% |
| 8 | Block Inc. | SQ | 8,038 | 0.04% |
| 9 | CleanSpark Inc. | CLSK | 6,154 | 0.03% |
| 10 | Hive Digital | HIVE | 2,287 | 0.01% |
Source: https://www.coingecko.com/en/public-companies-bitcoin
Below a summary of the pros and cons of investing in blockchain companies stocks:
| Pros | Cons |
|---|---|
| Diversification: Exposure to the cryptocurrency market without directly holding crypto currencies | Indirect exposure: Company performance may not correlate directly with digital coin prices |
| Traditional investment channels: Utilizes familiar investment platforms and accounts | Company-specific risks: Subject to risks inherent to the specific companies, such as management decisions and market competition |
Sector or Index Investing via Blockchain ETFs
Finally, the last alternative to the direct purchase of crypto is to invest on blockchain ETFs, which are exposed to a portfolio of companies with strong relations to the blockchain, the crypto sector or with the aim to track an index related to the blockchain.
Below we present the main blockchain ETFs available in Denmark:
| Navn | Ticker | AUM (EUR) | SKAT positive list | TER | 3 month perf. % | 1 year perf. % | 3 year perf. % |
|---|---|---|---|---|---|---|---|
| VanEck Crypto and Blockchain Innovators UCITS ETF | DAVV | 358,085,537 | yes | 0.65% | -34,95 | 34,84 | -10,02 |
| Global X Blockchain UCITS ETF – USD Accumulating | BLCH | 26,911,348 | yes | 0.50% | -34,62 | 5,72 | -23,19 |
| Invesco CoinShares Global Blockchain UCITS ETF Acc | BNXG | 728,245,788 | no | 0.65% | -12,91 | 18,75 | 12,02 |
| iShares Blockchain Technology UCITS ETF USD (Acc) | CBUT | 114,545,484 | yes | 0.49% | -29,04 | 10,96 | – |
| WisdomTree Blockchain UCITS ETF – USD Acc | WBKN | 38,125,906 | yes | 0.45% | -23,22 | 28,8 | – |
| Franklin AI, Metaverse and Blockchain UCITS ETF | FLRA | 8,824,565 | no | 0.30% | -3,53 | 24,06 | – |
Taxation of blockchain ETFs
Blockchain ETFs will be taxed on the same way as ETFs, which can vary from 15.3% to 42% and be taxes on unrealized gains or at realization, depending on which investment account you are holding the ETFs:
- 15.3% when held on your Installment pension (Ratepension). (There might be restrictions of much of crypto ETF you can invest in your pension)
- 17% when held on your Aktiesparekonto (ASK account)
- 27% to 42% when on SKAT positive list and held on your regular investment account (AKT)
Below a summary of the pros and cons of investing in blockchain ETFs:
| Pros | Cons |
|---|---|
| Diversification: Exposure to the cryptocurrency market without directly holding crypto currencies, reducing volatility risk | Indirect exposure: ETF performance will not correlate directly with digital coin prices or blockchain companies |
| Traditional investment channels: Utilizes familiar investment platforms and accounts | Index strategy: Subject to each ETF and index, requiring good understanding of portfolio allocation |
Latest Developments
As of early 2025, Bitcoin has experienced significant growth, surpassing $100,000 in 2024. This surge has increased interest among investors, but financial advisors recommend caution due to the cryptocurrency’s inherent volatility. Allocating a small portion of the portfolio, around 2%, is suggested for those interested in crypto investments.
Crypto taxation in Denmark is currently under revision by the Danish Law Council and changes can be implemented for 2026. This can affect how investors report their gains and losses and overall simplify crypto taxation.
Summary of Crypto Investment Strategies
| Strategy | Tax level | Volatility | Reporting | Deposit guarantee |
|---|---|---|---|---|
| Direct purchase | 37%/52% on realization | very-high | complex, manual | not applicable |
| Crypto ETPs | 37%/42% yearly on unrealized gains | very-high | simple, automatic | in line with DGS1 |
| Blockchain stocks | 27%/42% on realization | high | simple, automatic | in line with DGS1 |
| Blockchain ETFs | 15.3%-42% yearly on unrealized gains | medium | simple, automatic | in line with DGS1 |
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