Why the Nordics are a tinderbox for ETF innovation

The Nordic region has long been a quiet powerhouse in Europe’s capital markets, but its ETF and ETP ecosystem is now moving into a new phase of maturity. High levels of financial literacy, deep retail participation and a culture of digital adoption have created fertile ground for innovation and fast-growing investor demand.

In this interview, Helena Wedin, head of ETF & ETP at Nasdaq European Markets, outlines how the market is evolving, from the rise of locally listed products and white-label structures to the Nordics’ early leadership in crypto ETPs. She also uncovers why the region continues to punch above its weight in shaping Europe’s next generation of investment product innovation.

How has the high level of financial literacy and strong retail participation shaped the evolution of the ETF and ETP landscape in the Nordics?

The Nordics stand out for their high financial literacy and for the way retail engages in financial markets. Sweden leads the way, with nearly half of households indicating they hold financial securities— the highest in the EU—reflecting a culture of investing that has been decades in the making. This foundation, built from state-backed initiatives and advanced digital infrastructure development, has made ETFs and ETPs an appealing choice for individuals seeking diversification, transparency, and cost efficiency.

Historically, ETFs in the Nordics were primarily an institutional product, but the landscape has shifted. Retail investors now drive growth, supported by banks and digital retail platforms offering monthly savings accounts that automatically invest in ETFs instead of traditional savings products. These plans have made disciplined investments accessible to a wide range of investors —not just professionals.

The evolution of the Nordic market is also tied to broader capital market trends. IPO activity has boomed, with Nasdaq Stockholm raising nearly €6.5bn in 2025—six times more than last year—cementing its position as Europe’s number one venue for capital raising this year and attracting Verisure’s listing this September, the largest in Europe in three years. This unique environment reinforces investor confidence and creates fertile ground for innovation.

Over the past decades, Nasdaq has played a pivotal role in shaping this market: introducing derivatives trading 40 years ago, launching the first Nordic ETF 25 years ago, and pioneering crypto ETPs a decade ago. Today, ETFs are not just an investment tool—they symbolise a shift toward democratized finance, where technology and financial literacy converge to empower individuals across the Nordics.

What types of product innovation are driving the growth in listed assets on Nasdaq Nordic?

Broad benchmark ETFs remain the cornerstone of trading activity, but innovation is reshaping the landscape. Factor-based strategies—such as income, high-yield, and covered call products—are gaining traction, alongside thematic ETFs focused on areas like AI, global technology, and defence.

Another emerging trend is the push toward actively managed ETFs and hybrid structures that incorporate predefined active elements. These offer a unique proposition in an increasingly crowded market, particularly for new entrants with strong track records but limited scale. Additionally, discussions around listing share classes of existing funds as ETFs highlight a creative approach to expanding distribution and meeting investor demand for flexibility.

Nasdaq Nordic’s growth underscores these trends: ETF listings have doubled from 15 to 30 this year, and YOY transactions were up 33.7% as of November 2025. Two new ETF issuers—Xtrackers by DWS Group in partnership with Levler and Morgan Stanley with Montrose by DNB Carnegie—have joined the ETF market. This momentum highlights how innovation is reshaping the Nordic ETF landscape and driving liquidity and choice for investors.

What is driving the rise in white-label ETF structures among private banks and wealth managers, and why are local listings becoming an important element in distribution strategies?

The shift from mutual funds to ETFs is accelerating, driven by the rise of digital platforms and self-directed investing. To stay competitive, private banks and wealth managers are increasingly partnering with established issuers through white-label arrangements—as we have seen recently with DWS Group and Morgan Stanley— enabling them to offer tailored portfolios under their own brand while leveraging the expertise of seasoned ETF providers.

Local listings are a cornerstone in this strategy. Investors are highly cost-sensitive, and foreign exchange fees can significantly impact overall returns. Trading in local currency through familiar banking infrastructure not only reduces costs but also aligns with investor preferences for simplicity and accessibility. Recent examples include Morgan Stanley with Montrose by DNB Carnegie, and Xtrackers by DWS Group with Levler, both choosing to list in Swedish krona, allowing investors to invest locally.

What factors have enabled the Nordic region’s leadership in crypto ETPs?

Nasdaq Stockholm was among the first in Europe to embrace crypto ETPs, listing its inaugural product in 2015 and expanding the offering in subsequent years. Today, these products rank among the largest in Europe, supported by strong liquidity and broad member distribution—a testament to the principle that “liquidity is sticky.”

This leadership reflects a combination of timing, innovation, and careful risk management. During periods of regulatory uncertainty, Nasdaq has been working closely with industry participants to design frameworks that mitigate risk while meeting investor demand. The Nordic appetite for innovation also played a role: investors were eager to gain exposure to transformative technologies, reinforcing the region’s reputation as a forward-thinking market. Ultimately, this success underscores a core philosophy—staying close to innovation not just to adapt, but to help shape the future.

We are proud and excited to be part of this journey together with our clients and partners, including CoinShares, 21shares, Virtune, HANetf and WisdomTree. The crypto ETP market on Nasdaq Nordic has experienced significant growth, with listings increasing from 18 to over 60 in the past year. In June, Nasdaq broadened the list of eligible cryptocurrencies for ETPs, enabling issuers to include a more diverse range of digital assets. There are clear signs of investor interest, as ETN trading volumes have grown by 271.4% this year. This trajectory reflects a philosophy that goes beyond adaptation—staying close to innovation to help shape the future of capital markets.

Learn more about Nasdaq Europe ETFs and ETPs