Hargreaves Lansdown, one of the UK’s leading retail investment platforms, has issued a cautionary statement regarding the role of bitcoin in investment portfolios. Despite its plans to introduce crypto products for the first time, the firm emphasized that bitcoin should not be considered a fundamental asset class.
In an announcement on its website, the Bristol-based company pointed out that while bitcoin has demonstrated long-term price appreciation, it lacks the intrinsic properties required for inclusion in growth or income-focused portfolios. Hargreaves Lansdown highlighted the cryptocurrency’s track record, noting intervals marked by “extreme losses,” which makes performance predictions highly uncertain. The firm concluded that investors should not depend on bitcoin to meet their financial objectives.
This statement arrives shortly after the UK’s Financial Conduct Authority (FCA) lifted a nearly four-year ban on crypto exchange-traded notes (ETNs) aimed at retail investors. In response to this regulatory shift, Hargreaves Lansdown plans to take several months to design what it describes as a “balanced client journey.” This initiative includes ensuring that customers receive thorough risk warnings and complete an appropriateness assessment prior to making any investments in cryptocurrency products. For clients who are deemed suitable, there will likely be a cap limiting their crypto investments to 10% of their overall portfolio, in accordance with FCA regulations.
The firm also pointed out new regulatory stipulations governing the UK market. Under the updated rules, only crypto ETNs that are physically backed by major cryptocurrencies such as bitcoin or ether will be permitted. These financial instruments must also be listed on a Recognised Investment Exchange (RIE), such as the London Stock Exchange. These measures aim to align crypto products with the same levels of disclosure, transparency, and investor protection that are standard for conventional securities.
While Hargreaves Lansdown remains cautious about integrating bitcoin into traditional investment portfolios, it acknowledges that some clients may seek speculative opportunities. The firm is anticipating the launch of access to crypto ETNs in early 2026, with offerings expected to include pound-denominated and physically backed products from well-known issuers like 21Shares, CoinShares, and WisdomTree.
