Largest retail investment platform in the UK: Bitcoin is not an asset and should not be in your investment portfolio.
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Britain's largest retail investment platform, Hargreaves Lansdowne, recently issued a warning to investors, stating that Bitcoin is not an asset class and should not be included in investment portfolios. The company stated:
“HL’s investment view is that Bitcoin is not an asset class, and we do not believe cryptocurrencies possess the characteristics required to be included in growth or income portfolios.”
This warning comes as the UK eases cryptocurrency regulations. On October 8, the UK lifted its long-standing ban on retail investors accessing crypto exchange-traded notes (ETNs). Previously, the UK government also announced on Wednesday that investors would be able to hold crypto ETNs in Stocks and Shares ISAs, which allow annual tax-free investments of up to £20,000.
Hargreaves Lansdowne emphasized the high-risk nature of cryptocurrencies, stating that “unlike other alternative asset classes, it has no intrinsic value.” Nonetheless, the company acknowledged that some traders wish to “speculate on crypto ETNs,” so it will begin offering such opportunities to “suitable clients” from early 2026. At the time of reporting, Bitcoin was trading at around $121,603.
Regulatory Easing Triggers Platform Warning
The lifting of the ETN ban by the UK government has been hailed by crypto companies as a major breakthrough for the industry in the UK. The government previously announced that this move would support “the growth and competitiveness of the UK crypto industry.” The new regulation allows retail investors to access digital tokens via regulated exchanges, while ETNs function as debt instruments linked to one or more specific assets.
However, Hargreaves Lansdowne is cautious about this. The company urges UK retail investors to remain prudent under the new regulations. The platform’s statement said:
“The performance assumptions of cryptocurrencies cannot be analyzed; unlike other alternative asset classes, they have no intrinsic value.”
The government also allows investors to hold crypto ETNs in ISAs, meaning investors can invest up to $26,753 in crypto products tax-free each year.
The platform further emphasized the extreme volatility of cryptocurrencies such as Bitcoin. While acknowledging Bitcoin’s long-term positive return, Hargreaves Lansdowne reminds investors:
“Bitcoin has experienced several periods of extreme losses and is a highly volatile investment—its risk is far higher than that of stocks or bonds.”
This view is based on historical data, such as the “crypto winter” of 2022, which resulted in investor losses of up to $2 trillion. As such, the platform believes crypto should not be relied upon to help clients achieve their financial goals.
Mixed Attitudes Among Wall Street Institutions
The value of cryptocurrencies has long been a point of debate among market observers, and large financial institutions hold varying views on the matter. In the US, some mainstream institutions are actively embracing digital assets. According to reports, Morgan Stanley is close to offering retail investors crypto trading services through its E-Trade arm. It was the first major US bank to provide access to Bitcoin funds for its wealthy clients, and other banks soon followed suit.
J.P. Morgan also plans to get involved in the stablecoin field, even though its CEO Jamie Dimon has consistently criticized cryptocurrencies. In addition, billionaire investor Warren Buffett has publicly lambasted cryptocurrencies.
Within the wider expert community, views on crypto are similarly polarized. Chris Mellor, Head of EMEA ETF Equity Product Management at Invesco, said on Thursday that digital assets can provide investors with a tool to hedge volatility in traditional asset classes. He stated:
“Bitcoin and other cryptocurrencies are sometimes seen as ‘digital gold’... We believe there is room for both within a portfolio.”
He observed that in recent months, Bitcoin’s correlation with stocks, US Treasuries, and gold has been very low.
On the other hand, Nigel Green, CEO of financial advisory firm deVere Group, believes Bitcoin’s recent breakthrough of the $125,000 mark signifies that digital assets have entered the financial mainstream. He said:
“Investors no longer see Bitcoin as a curiosity on the fringes of the market... This is a structural adjustment, not a temporary rebound.”
Green pointed out that the favorable policy environment under the Trump administration has further bolstered its credibility, and “the hands holding Bitcoin have become stronger, more institutional, and more patient.”
Risk Disclaimer and TermsThe market involves risks, and investing should be approached cautiously. This article does not constitute personal investment advice, nor does it take into account individual users’ special investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Investing based on the above is at your own risk. ```