‘Bitcoin Is Not an Asset Class,’ Says One of UK’s Largest Retail Investment Platforms

Core Viewpoint - Hargreaves Lansdown warns that bitcoin should not be considered a core part of investment portfolios, despite preparing to offer crypto products to clients for the first time [1][2] Group 1: Investment Perspective - The company states that bitcoin is not an asset class and lacks intrinsic characteristics justifying its inclusion in growth or income portfolios [1] - Hargreaves Lansdown highlights the cryptocurrency's price history, which includes periods of extreme losses, making performance assumptions difficult to analyze [2] - The firm emphasizes that bitcoin should not be relied upon to help clients meet their financial goals [2] Group 2: Regulatory Context - The UK's Financial Conduct Authority (FCA) has lifted a nearly four-year ban on crypto exchange-traded notes (ETNs) for retail investors, allowing Hargreaves Lansdown to proceed with its plans [2] - The FCA will permit only crypto ETNs that are physically backed by bitcoin or ether and listed on a Recognised Investment Exchange (RIE) [4] - These regulations aim to ensure that crypto products adhere to the same disclosure, transparency, and investor-protection standards as traditional securities [4] Group 3: Client Engagement and Offerings - Hargreaves Lansdown plans to develop a "balanced client journey" over several months, which includes detailed risk warnings and an appropriateness assessment for clients before investing [3] - Clients who qualify will face a 10% portfolio cap on crypto exposure in accordance with FCA rules [3] - The firm anticipates launching access to crypto ETNs in early 2026, with offerings likely to include pound-denominated, physically backed products from issuers such as 21Shares, CoinShares, and WisdomTree [5]