Hargreaves Lansdown: Bitcoin is Not an Asset Class

Hargreaves Lansdown, one of the largest retail investment platforms in the United Kingdom, emphasized that Bitcoin should not be considered a core asset in portfolios. The company stated that Bitcoin lacks intrinsic value and should not be relied upon for growth or income.

The company plans to offer crypto ETNs (exchange-traded notes) in the early part of 2026, but noted that this will only be available to customers who pass a risk assessment. Trading will be conducted exclusively on physically backed Bitcoin and Ethereum ETNs that are listed on the London Stock Exchange.

Hargreaves Lansdown stated on its website that despite long-term price increases of Bitcoin, it should not be regarded as "a class of asset." The company highlighted that Bitcoin's price history shows "extreme losses" and expressed that analyzing performance assumptions is impossible. Therefore, it warned investors not to rely on Bitcoin to meet their financial goals.

These statements came immediately after the UK’s Financial Conduct Authority (FCA) lifted its nearly four-year ban on crypto ETNs for retail investors. Hargreaves Lansdown mentioned that it plans to develop a "balanced customer journey," which will take several months for investors to receive detailed risk warnings and go through assessments. Qualified customers will be allowed to invest in crypto assets, typically with a portfolio limit of 10%, in compliance with FCA rules.

The firm also drew attention to the new regulatory conditions in the UK market. The FCA will allow crypto ETNs that are physically backed by Bitcoin or Ethereum and traded on recognized investment exchanges (RIE) like the London Stock Exchange. These restrictions aim to ensure that crypto products meet the same disclosure, transparency, and investor protection standards as traditional securities.

Hargreaves Lansdown described the inclusion of Bitcoin in traditional portfolios as a significant step, although it acknowledged that some customers may show interest in speculative exposure. The company announced that it expects access to crypto ETNs to begin in early 2026, and the products offered will be priced in pounds and physically backed. These products will include offerings from providers such as 21Shares, CoinShares, and WisdomTree.