LONDON – Britain’s biggest retail investment platform, Hargreaves Lansdowne, has issued a strong caution to traders eyeing opportunities in digital assets, warning that cryptocurrencies — including bitcoin — should not be part of long-term investment portfolios.
The warning comes just days after the U.K. lifted its longstanding ban on retail investors accessing crypto exchange-traded notes (ETNs) on October 8. ETNs, which are debt instruments tied to underlying assets, will now give traders regulated exposure to digital tokens through mainstream exchanges.
In a statement, Hargreaves Lansdowne said:
“The HL Investment view is that bitcoin is not an asset class, and we do not think cryptocurrency has characteristics that mean it should be included in portfolios for growth or income and shouldn’t be relied upon to help clients meet their financial goals.”
The platform added that cryptocurrencies lack intrinsic value and that performance assumptions are impossible to analyze compared with other alternative assets.
A Regulatory Shift with Mixed Reactions
When officials announced earlier this year that the ETN ban would be overturned, they argued the move would strengthen the U.K.’s crypto industry and global competitiveness. The government further ruled that crypto ETNs can now be held in tax-free stocks and shares ISA accounts, with a contribution allowance of up to £20,000 ($26,753) per year.
While crypto firms celebrated the decision as a breakthrough for Britain’s digital asset sector, Hargreaves Lansdowne stressed the risks. The firm acknowledged, however, that some clients are keen to speculate and said it will allow “appropriate clients” to trade crypto ETNs starting in early 2026.
High Risk, High Volatility
Bitcoin — the most widely traded cryptocurrency — was last seen trading around $121,508. Despite strong long-term returns, its history of steep crashes remains a concern. The 2022 “crypto winter” wiped out $2 trillion in market value, underscoring the dangers of unchecked volatility.
“While longer-term returns of bitcoin have been positive, bitcoin has experienced several periods of extreme losses and is a highly volatile investment — much riskier than stocks or bonds,” Hargreaves Lansdowne cautioned.
Institutional Divide
The crypto debate continues to divide global financial institutions.
Morgan Stanley recently revealed plans to expand crypto trading to retail clients via its E-Trade platform.
JPMorgan is exploring opportunities in stablecoins, even as CEO Jamie Dimon remains openly critical of crypto.
Warren Buffett, one of the world’s most influential investors, has long dismissed cryptocurrencies outright.
Others, however, see opportunity. Chris Mellor, head of EMEA ETF equity product management at Invesco, told CNBC that bitcoin can serve as a hedge against traditional market volatility, sometimes acting as “digital gold.”
Nigel Green, CEO of financial consultancy DeVere Group, argued that bitcoin’s climb above $125,000 reflects its entry into the financial mainstream. “Volatility still exists, but it is now productive volatility, the kind that accompanies price discovery in a maturing market,” he said. “This is a structural realignment, not a temporary rally.”
The Bottom Line
For now, U.K. investors face a paradox: regulators are opening the door to crypto ETNs, but the nation’s largest investment platform is warning them not to walk through it. As institutional adoption grows and policies shift under the Trump administration’s favorable stance toward digital assets, the question remains whether bitcoin will remain a speculative gamble — or solidify its place as a long-term portfolio asset.
