Bitcoin Dissed By UK’s Top Investment Platform: ‘Not An Asset Class’
Hargreaves Lansdown, the UK’s biggest retail investment platform, has slammed Bitcoin, saying it’s not a real asset class and should not be included in investor portfolios.
The investment giant’s remarks came just days after the UK government lifted a longstanding ban on crypto exchange-traded notes (ETNs), reigniting debate over digital assets in retail portfolios.
“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,” the firm said. It “shouldn’t be relied upon to help clients meet their financial goals.”
UK Lifts Ban On Crypto ETNs
The UK’s decision came into effect on Oct. 8 and allows retail investors to buy crypto ETNs and hold them within stocks and shares ISAs — meaning up to £20,000 ($26,753) per year in tax-free exposure to digital assets. Officials said the move aims to bolster “the growth and competitiveness of the UK’s crypto industry.”
Crypto ETNs are debt instruments that mirror the price of digital assets like Bitcoin, giving investors exposure without owning the underlying token.
UK officials first hinted that the ban would be overturned earlier this year.
Hargreaves Landsdown Says BTC Has No Intrinsic Value
Bitcoin’s price has risen more than 8% in the past month, according to data from CoinMarketCap.
Bitcoin price (Source: CoinMarketCap)
Year-to-date, the largest crypto by market cap is also up 100% to trade at $121,762.09 as of 5:46 a.m. EST.
Hargreaves Lansdown noted Bitcoin’s positive performance over longer-term time frames, but said that “Bitcoin has experienced several periods of extreme losses,” adding that BTC “is a highly volatile investment” that is “much riskier than stocks or bonds.”
“Performance assumptions are not possible to analyse for crypto, and unlike other alternative asset classes it has no intrinsic value,” the firm added.
Despite the skepticism towards Bitcoin, Hargreaves Lansdown acknowledged that some traders still wished to “speculate with crypto ETNs.” It said it would therefore offer “appropriate clients” the opportunity to invest in crypto ETNs from early 2026.
Institutions Start Opening Up To Bitcoin And Digital Assets
While analysts remain divided on Bitcoin and the broader crypto market, there have been multiple institutions that have opened up, or are starting to open up, to digital assets.
One of those institutions is Morgan Stanley, who said last month that it was close to offering crypto trading to retail investors through its E-Trade division.
Meanwhile, Invesco’s head of EMEA ETF equity product management, Chris Mellor, said earlier this week that he believes digital assets provide investors with a hedge against volatility in traditional asset classes.
Bitcoin’s recent climb above $126K has also been seen by DeVere CEO Nigel Green as a signal that the crypto has entered the financial mainstream.
Even hedge fund heavyweight Ray Dalio has said investors should hold 15% of their portfolios in gold and Bitcoin.
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