Core Viewpoint - A major UK trading platform has issued a strong warning against including cryptocurrencies in investment portfolios, asserting that they do not qualify as assets [1] Regulatory Changes - On the 8th, the UK lifted a long-standing ban on retail investors participating in cryptocurrency exchange-traded notes (ETNs), which are debt instruments linked to specific assets [1] - The UK government also allowed investors to hold crypto ETNs within stocks and shares individual savings accounts, with a tax-free allowance of up to £20,000 (approximately $26,614) per year [1] Company Position - Hargreaves Lansdown, the largest retail investment platform in the UK, urged retail investors to exercise caution regarding cryptocurrencies [1] - The company maintains that Bitcoin is not an asset class and lacks the characteristics necessary for inclusion in growth or income investment portfolios, emphasizing that it has no intrinsic value [1]

Core Viewpoint - A major UK trading platform warns that cryptocurrencies should not be included in investment portfolios as they do not qualify as assets [1] Regulatory Changes - On the 8th, the UK lifted a long-standing ban on retail investors participating in cryptocurrency exchange-traded notes (ETNs), which are debt instruments linked to specific assets [1] - The new regulations allow investors to hold crypto ETNs in stocks and shares individual savings accounts, with a tax-free allowance of up to £20,000 (approximately $26,614) per year [1] Company Position - Hargreaves Lansdown, the largest retail investment platform in the UK, issued a warning urging retail investors to exercise caution regarding cryptocurrencies [1] - The company maintains that Bitcoin is not an asset class and lacks the characteristics necessary to be included in growth or income investment portfolios, stating it has no intrinsic value [1]

Core Viewpoint - The UK's Financial Conduct Authority (FCA) has lifted its four-year ban on crypto ETNs, allowing retail investors access to Bitcoin and Ethereum ETNs starting October 8, 2025, which is seen as a delayed response to the evolving financial landscape of digital assets [1][5]. Regulatory Background - The FCA imposed a ban in January 2021 on the sale, marketing, and distribution of crypto-backed derivatives and ETNs to retail investors due to concerns over volatility, market manipulation, and potential consumer losses [2][3]. - The ban was a reaction to the 2018 crypto crash and fears of speculative mania leading to significant retail losses, which critics now view as overly paternalistic [3]. Market Developments - During the ban, the EU and US advanced their crypto markets, with the EU approving crypto ETNs in 2021 and the US allowing spot Bitcoin ETFs in January 2024, resulting in substantial inflows and legitimization of digital assets [4]. - UK investors missed opportunities for regulated exposure to Bitcoin and Ethereum during this period, as they were restricted from accessing these investment vehicles [4]. Future Implications - The FCA's decision to lift the ban is seen as an attempt to regain relevance in a rapidly changing financial environment, although some critics argue it may be too late to capitalize on the initial momentum of global crypto adoption [2][5]. - The newly allowed ETNs will be listed on FCA-recognized exchanges, providing a regulated framework for retail investors while exposing them to issuer credit risk rather than direct ownership of cryptocurrencies [6].

Group 1 - The U.K. and U.S. have established the "Transatlantic Taskforce for Markets of the Future" to enhance collaboration on capital markets and digital assets [1][2][6] - The taskforce aims to align digital asset policies, particularly as the U.K. prepares to launch its first BTC-tracking Exchange Traded Notes (ETNs) in October [1][2][6] - The initiative will focus on both short-to-medium term collaboration while exploring long-term partnership opportunities in the digital asset space [2][3] Group 2 - The taskforce will also work on improving links between capital markets in the U.K. and U.S., facilitating cross-border investment [3] - The U.K. has diverged from the U.S. in its approach to crypto investment products, favoring ETNs over Exchange-Traded Funds (ETFs) [4] - Crypto ETNs have gained popularity in Europe, with some vehicles amassing assets exceeding $1 billion, despite the risks associated with their structure [5]