A prominent retail investment platform in the UK has issued a warning about investing in cryptocurrencies, specifically stating that Bitcoin should not be considered an asset class. This caution emerged following recent relaxation of regulatory restrictions that previously limited retail access to crypto exchange-traded notes (ETNs) in the country.
The platform expressed that cryptocurrencies, including Bitcoin, lack the fundamental characteristics necessary for inclusion in growth or income portfolios. They reiterated that reliance on cryptocurrencies for meeting financial goals is ill-advised and highlighted the difficulties in analyzing performance assumptions for these digital assets, emphasizing that they do not possess intrinsic value.
This warning came shortly after Bitcoin reached a new peak valuation exceeding $125,000, although it subsequently underwent a correction. Nonetheless, general sentiment surrounding Bitcoin remains optimistic.
Despite their cautionary stance, the platform plans to offer crypto ETNs to clients, albeit under specific restrictions. These new products are expected to be launched early next year, requiring clients to complete an appropriateness assessment before investing. There will also be limits on investment amounts; for certain retail investors, investments in regulated crypto products may be capped at 10% of their total investment portfolio.
As of mid-2025, the platform has reported over two million active clients, adding approximately 136,000 new clients in the ongoing year. The total assets under administration amount to £172.7 billion, which includes £6 billion in new funding secured this year. The firm enjoys a client retention rate of 91.5%.
Previously, they provided access to four crypto ETNs listed on the Stockholm Stock Exchange before regulatory changes barred retail access in January 2020. The new regulations became effective on October 8, enabling UK platforms to offer crypto ETNs that trade exclusively on local stock exchanges.
This critical view of cryptocurrencies is not unique to this platform; other financial institutions have also expressed skepticism while still offering crypto-related services. For example, the CEO of a significant bank previously likened Bitcoin to a Ponzi scheme, although the bank now provides various crypto services to consumers and institutions, differing by region.
In the United States, a partnership between a major bank and a crypto exchange has allowed customers to purchase cryptocurrencies using bank credit cards, directly link bank accounts, and convert reward points into stablecoins, further demonstrating the growing integration of traditional finance and crypto despite ongoing concerns.