Hargreaves Lansdown, a leading retail investment platform in the UK, recently expressed skepticism regarding cryptocurrency investments, particularly Bitcoin, labeling it as “not an asset class.” This warning follows a decision by the UK financial regulator to lift prior restrictions that limited retail access to crypto exchange-traded notes (ETNs).
The platform emphasized that it does not believe cryptocurrencies possess the characteristics necessary for inclusion in growth or income portfolios, nor should they be relied upon to achieve clients’ financial objectives. According to their assessment, making performance predictions for crypto is challenging, and it lacks any intrinsic value compared to traditional asset classes.
This caution comes against a backdrop where Bitcoin has been impacting the financial landscape significantly, with its value reaching new peaks, recently hitting over $125,000, although it has experienced some corrections. Despite these fluctuations, market sentiment surrounding Bitcoin remains largely optimistic.
Interestingly, while expressing these reservations, Hargreaves Lansdown plans to introduce crypto ETNs to its offerings early next year, albeit with precautionary measures in place. Clients will be required to complete an appropriateness assessment before making investments, and some may face restrictions limiting their investments to a maximum of 10% of their total portfolio.
At the end of June 2025, the platform boasted over 2 million active clients and had attracted around 136,000 new clients in that year alone. Their assets under administration totaled approximately £172.7 billion, which included £6 billion in new investments received during the same period. The platform maintains a high client retention rate of around 91.5%.
Additionally, prior to regulatory restrictions in January 2020, the platform had previously provided access to four crypto ETNs listed on the Stockholm Stock Exchange. With recent regulatory changes effective from October 8, UK platforms are now allowed to offer crypto ETNs exclusively traded on domestic exchanges.
Hargreaves Lansdown is not the only financial entity taking a cautious stance towards cryptocurrency while simultaneously offering its products. For instance, JPMorgan’s CEO has previously equated Bitcoin to Ponzi schemes, yet the bank is now involved in providing crypto-related services to both consumers and institutions, illustrating a trend where skepticism coexists with engagement in the market.
In the U.S., a partnership with Coinbase showcases how traditional banks are evolving with the crypto trend, allowing users to transact and invest in cryptocurrencies using familiar banking tools. Current features include purchasing crypto with Chase credit cards and linking bank accounts directly to Coinbase, with plans for expanded rewards programs linked to crypto in the coming years.
Overall, while there remains a sense of caution regarding cryptocurrencies from some investment platforms, the market continues to exhibit growth potential and evolving accessibility for retail investors, indicating a complex and rapidly changing financial landscape.