Hargreaves Lansdown, one of many UK’s largest retail funding platforms, has warned that bitcoin shouldn’t be handled as a core a part of funding portfolios — even because it prepares to supply crypto merchandise to shoppers for the primary time.
In a assertion printed on its web site, the Bristol-based agency stated bitcoin, regardless of its long-term worth positive factors, “is just not an asset class” and lacks the intrinsic traits that will justify together with it in a portfolio for development or earnings.
Hargreaves Lansdown argued that the cryptocurrency’s worth historical past exhibits intervals of “excessive losses,” including that efficiency assumptions are inconceivable to investigate and that the asset “shouldn’t be relied upon” to assist shoppers meet monetary targets.
The corporate’s remarks come shortly after the UK’s Monetary Conduct Authority (FCA) ended its practically four-year ban on crypto exchange-traded notes (ETNs) for retail buyers.
Hargreaves Lansdown stated it plans to take a number of months to develop what it calls a “balanced shopper journey,” guaranteeing clients obtain detailed threat warnings and cross an appropriateness evaluation earlier than being allowed to speculate. Shoppers who qualify will usually face a ten% portfolio cap on crypto publicity underneath FCA guidelines.
The agency additionally highlighted new regulatory situations for the UK market.
The FCA will solely permit crypto ETNs which are bodily backed by bitcoin or ether — that means they’re supported by reserves of the underlying belongings — and which are listed on a Recognised Funding Alternate (RIE) such because the London Inventory Alternate. These restrictions are meant to convey crypto merchandise underneath the identical disclosure, transparency, and investor-protection requirements that apply to conventional securities.
Whereas bitcoin’s inclusion in typical portfolios stays a step too far for Hargreaves Lansdown, it acknowledged that some shoppers will nonetheless need speculative publicity.
The agency stated it expects to launch entry to crypto ETNs in early 2026, with choices prone to embrace pound-denominated, bodily backed merchandise from issuers corresponding to 21Shares, CoinShares and WisdomTree.
