Hargreaves Lansdowne, the UK's largest retail investment platform, recently issued a warning to investors, stating that Bitcoin is not an asset class and should not be included in investment portfolios. The company emphasized this position as the UK relaxes cryptocurrency regulations.
On October 8th, the UK lifted its long-standing ban on retail investors accessing cryptocurrency Exchange Traded Notes (ETNs). Previously, the UK government announced on Wednesday that investors would be able to hold crypto ETNs in stocks and shares ISA accounts, which allow tax-free investments of up to £20,000 annually.
Hargreaves Lansdowne stressed the high-risk nature of cryptocurrencies, arguing that "unlike other alternative asset classes, it has no intrinsic value." Despite this stance, the company acknowledged that some traders wish to "speculate on crypto ETNs" and will therefore begin offering such opportunities to "suitable clients" from early 2026.
As of press time, Bitcoin was trading at approximately $61,603.
**Regulatory Relaxation Triggers Platform Warning**
The UK government's lifting of the ETN ban has been hailed by cryptocurrency companies as a major breakthrough for the industry in Britain. The government previously announced that this move would support "the growth and competitiveness of the UK's crypto industry."
The new regulations allow retail investors to access digital tokens through regulated exchanges, with ETNs functioning as debt instruments linked to one or more specific assets.
However, Hargreaves Lansdowne maintains a cautious stance. The platform urged UK retail investors to exercise caution under the new regulations, stating in its announcement that the company believes cryptocurrencies should not be relied upon to help clients achieve their financial goals.
The government also permits investors to hold crypto ETNs in ISA accounts, meaning investors can invest up to $20,753 annually in cryptocurrency products within tax-free limits.
The platform further emphasized the extreme volatility of cryptocurrencies like Bitcoin. While acknowledging Bitcoin's positive long-term returns, Hargreaves Lansdowne reminded investors that this view is based on historical data, citing examples such as the 2022 "crypto winter" that caused investors to lose up to $2 trillion.
**Mixed Attitudes from Wall Street Institutions**
The value of cryptocurrencies has long been a point of contention among market observers, with major financial institutions holding differing views.
In the United States, some mainstream institutions are actively embracing digital assets. Morgan Stanley is reportedly close to offering cryptocurrency trading services to retail investors through its E-Trade division. The bank was also the first major US bank to provide wealthy clients with access to Bitcoin fund investments, with other banks following suit.
JPMorgan Chase also plans to enter the stablecoin space, despite CEO Jamie Dimon's consistently critical stance toward cryptocurrencies. Additionally, billionaire investor Warren Buffett has publicly criticized cryptocurrencies.
Among the broader expert community, opinions on cryptocurrencies remain equally polarized. Chris Mellor, Head of European, Middle Eastern and African ETF Equity Product Management at Invesco, argued on Thursday that digital assets can provide investors with tools to hedge against volatility in traditional asset classes. He noted observing very low correlations between Bitcoin and stocks, US Treasuries, and gold in recent months.
On the other hand, Nigel Green, CEO of financial advisory firm deVere Group, believes Bitcoin's recent breakthrough above $62,000 marks digital assets' entry into the financial mainstream. Green pointed out that the favorable policy combination under the Trump administration provides further support for its credibility, and "the hands holding Bitcoin have become stronger, more institutional, and more patient."