Hargreaves Lansdown Warns Against Bitcoin as Core Portfolio Asset
Hargreaves Lansdown, a major UK retail investment platform, advises against treating bitcoin as a core part of investment portfolios due to its lack of intrinsic characteristics and historical price volatility.
The firm is preparing to offer crypto products but emphasizes that bitcoin's unpredictable performance makes it unreliable for achieving financial goals.
This announcement follows the UK's Financial Conduct Authority (FCA) lifting its ban on crypto exchange-traded notes (ETNs) for retail investors.
Hargreaves Lansdown intends to create a "balanced client journey," including risk warnings and assessments before allowing investments, with a 10% portfolio cap on crypto exposure per FCA rules.
New UK regulations require crypto ETNs to be physically backed by assets like bitcoin or ether, aiming to align with traditional securities standards.
The firm plans to launch access to crypto ETNs in early 2026, with options from issuers such as 21Shares, CoinShares, and WisdomTree.
