Hargreaves Lansdown, one of the UK’s largest retail investment platforms, has warned that bitcoin should not be treated as an essential part of investment portfolios – even as it prepares to offer crypto products to its customers for the first time.
In a statement on its website, the Bristol-based company said that Bitcoin, despite its long-term price gains, “is not an asset class” and does not possess the intrinsic characteristics that would justify its inclusion in a growth or income portfolio.
Hargreaves Lansdown argued that the cryptocurrency’s price history shows periods of “extreme losses”, adding that performance assumptions are impossible to analyze and the asset “should not be relied upon” to help customers achieve their financial goals.
The company’s remarks come shortly after the UK’s Financial Conduct Authority (FCA) ended its nearly four-year ban on crypto exchange-traded notes (ETNs) for retail investors.
Hargreaves Lansdown said it plans to take several months to develop what it calls a “balanced customer journey”, ensuring customers receive detailed risk warnings and pass an opportunity assessment before being allowed to invest. Eligible clients will generally face a 10% portfolio cap on crypto exposure under FCA rules.
The company also highlighted new regulatory conditions for the UK market.
The FCA will only allow crypto ETNs that are physically backed by Bitcoin or Ether – meaning they are backed by the reserves of the underlying assets – and that are listed on a recognized investment exchange (RIE) such as the London Stock Exchange. These restrictions are intended to subject crypto products to the same standards of disclosure, transparency and investor protection that apply to traditional securities.
While the inclusion of Bitcoin in conventional wallets remains a step too far for Hargreaves Lansdown, he acknowledges that some clients will still want speculative exposure.
The company said it plans to launch access to crypto ETNs in early 2026, with offerings likely to include sterling-denominated products physically backed by issuers such as 21Shares, CoinShares and WisdomTree.
