Hargreaves Lansdown Warns Against Bitcoin as Asset Class Following UK Ban Lift

Core Viewpoint - Hargreaves Lansdown has warned U.K. investors against heavily investing in cryptocurrencies despite the FCA lifting its ban on crypto exchange-traded notes (ETNs) for retail investors [1][2][6]. FCA Lifts Ban on Crypto ETNs - On October 8, the FCA lifted its 2021 ban on the sale of crypto ETNs to retail investors, allowing recognized investment exchanges to list these products again [2][3]. - Crypto ETNs are debt instruments that mirror the price of digital assets like Bitcoin and Ethereum, providing exposure to cryptocurrencies without direct ownership [3]. Warnings Against Crypto - Hargreaves Lansdown stated that Bitcoin has "no intrinsic value" and does not believe cryptocurrencies should be included in portfolios for growth or income [4][6]. - The firm emphasized that cryptocurrencies should not be relied upon to meet long-term financial goals [6]. Industry Response - Hargreaves Lansdown has taken a strict stance compared to other investment firms following the ban lift, remaining cautious about offering regulated crypto products [5][6]. - Rival platforms Saxo and Interactive Investor plan to offer cETNs soon, while Hargreaves Lansdown will assess risks associated with cETNs and expects to allow limited customer access from early next year [6][7].