British investment firm Hargreaves Lansdown has issued a significant warning to potential investors, advising them to steer clear of Bitcoin and cryptocurrencies due to the high risks associated with these assets. The Bristol-based financial services company, which manages approximately £170 billion ($226.8 billion) in assets, emphasized that cryptocurrency investments should not be relied upon to achieve financial goals.
In a statement posted on its website, Hargreaves Lansdown clarified that while Bitcoin is the most prominent and widely held cryptocurrency, it is characterized by extreme volatility and has experienced numerous periods of substantial losses. The firm cautioned that such volatility makes Bitcoin a far riskier investment than traditional stocks or bonds. Hargreaves Lansdown explicitly stated, “The HL Investment view is that Bitcoin is not an asset class, and we do not think cryptocurrency has characteristics that mean it should be included in portfolios for growth or income.”
While cautioning against cryptocurrency investments, Hargreaves Lansdown did note that it would permit qualified investors to invest in newly launched UK cryptocurrency exchange-traded notes (ETNs). However, the firm reiterated that cryptocurrencies lack intrinsic value, underscoring its stance against including them in investment portfolios.
This warning starkly contrasts the evolving perspectives of some global financial giants regarding cryptocurrencies. Notably, BlackRock, the world’s largest asset manager, has shifted its stance in recent years, with CEO Larry Fink publicly acknowledging the legitimacy of Bitcoin as a financial instrument. BlackRock made headlines in 2023 by filing for a Bitcoin exchange-traded fund (ETF), which received approval from the SEC in 2024 and marked the most successful launch in ETF history.
In contrast, prominent figures in traditional finance continue to express skepticism about cryptocurrencies. Jamie Dimon, CEO of JP Morgan, has been a vocal critic of Bitcoin, stating, “I’m not personally a believer in Bitcoin itself, but you’re the customer; I don’t like to tell customers what they can and can’t do with their money.”
The volatility of Bitcoin was further underscored on a recent trading day when its price dropped over 2% amid economic concerns following President Trump’s comments regarding potential tariffs on China. This downward trend occurred concurrently with a broader decline in stock markets. Currently, Bitcoin trades below $118,000, and sentiment among traders has become increasingly bearish, with a significantly reduced chance of reaching a new all-time high of $140,000 before potentially falling back to $110,000.
With contrasting views emerging within the financial sector, investors are faced with a complex landscape that requires careful consideration. Hargreaves Lansdown’s warning serves as a reminder of the inherent risks associated with cryptocurrency investments, particularly in an environment where market perceptions can shift dramatically in response to economic events and broader market trends.
