A significant warning has emerged from one of the U.K.’s largest trading platforms, Hargreaves Lansdowne, addressing investors eager to capitalize on recently relaxed cryptocurrency regulations. Following the lifting of a longstanding ban on retail investors accessing cryptocurrency exchange-traded notes (ETNs) on October 8, the firm advised against including cryptocurrencies in investment portfolios.
Exchange-traded notes are debt instruments designed to provide traders with exposure to specific assets, in this case, digital currencies through regulated exchanges. The U.K. government endorsed the dismantling of the ETN ban earlier this year as a move to bolster the country’s competitive stance in the crypto industry, a decision welcomed by many in the sector. Investors can now hold these crypto ETNs in tax-free stocks and shares ISA accounts, allowing up to £20,000 ($26,753) per year.
Despite these advancements, Hargreaves Lansdowne’s statement underscores their skepticism towards cryptocurrencies, highlighting the lack of intrinsic value and problematic performance analysis linked to digital assets. “The HL Investment view is that bitcoin is not an asset class,” they declared, emphasizing the extreme volatility and significant risks associated with cryptocurrencies compared to traditional investments such as stocks and bonds.
The firm further acknowledged the allure of speculative trading in cryptocurrencies, noting that some clients may still wish to engage with cryptocurrency ETNs starting in early 2026.
While cryptocurrencies have their proponents, the market remains divided. There is notable institutional interest, with Morgan Stanley reportedly preparing to offer crypto trading to retail investors through its E-Trade division, becoming a pioneer among major U.S. banks in this domain. Conversely, figures like JPMorgan CEO Jamie Dimon and investor Warren Buffett have been vocally critical of digital currencies.
Some industry experts view cryptocurrencies positively, with Chris Mellor from Invesco suggesting that digital assets could serve as a hedge against volatility in traditional markets. He referred to cryptocurrencies as “digital gold,” raising discussions on the potential of bitcoin to replace gold as a non-fiat asset.
In parallel, Nigel Green from DeVere Group noted bitcoin’s recent surge past the $125,000 milestone as indicative of its rising acceptance in the financial mainstream. He acknowledged the inherent volatility while framing it as a natural aspect of a maturing market. Green further suggested that the current investor base for bitcoin is increasingly institutional, patient, and strategically focused, reinforcing its status as a viable long-term investment.
