UK’s Largest Investment Platform Warns Retail Traders Against Adding Crypto to Portfolios

Hargreaves Lansdown, the UK’s biggest retail investment platform, has urged investors to steer clear of cryptocurrencies despite regulators easing restrictions on crypto investment products.

The warning follows the lifting of a long-standing ban on retail access to crypto exchange-traded notes (ETNs) on Oct. 8.

Crypto ETNs, debt instruments tied to the value of digital assets, will now be available on regulated exchanges and eligible for inclusion in tax-free stocks and shares ISA accounts.

Hargreaves Lansdown Calls Bitcoin ‘Valueless’

The move was celebrated by the crypto industry as a key step in positioning the UK as a digital asset hub.

However, Hargreaves Lansdown has taken a hard line. “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 in a statement.

“Unlike other asset classes, it has no intrinsic value.”

The firm warned that crypto’s extreme volatility makes it unsuitable for long-term investors, citing repeated crashes and unpredictable price swings.

“While longer-term returns of bitcoin have been positive, bitcoin has experienced several periods of extreme losses and is a highly volatile investment — much riskier than stocks or bonds,” it added.

Despite its cautious stance, Hargreaves Lansdown said it plans to allow “appropriate clients” to trade crypto ETNs starting in early 2026, acknowledging that some traders will want speculative exposure to the market.

JUST IN: 🇬🇧 UK retail investors will be able to invest in #Bitcoin ETNs from today.

Bullish 🚀 pic.twitter.com/bkG6qlstHW

— Bitcoin Magazine (@BitcoinMagazine) October 8, 2025

The firm’s warning contrasts with growing institutional interest in digital assets. Major banks, including Morgan Stanley and JPMorgan, are expanding crypto services, while asset managers like Invesco argue that digital assets can act as a hedge against traditional market volatility.

Invesco’s Chris Mellor told CNBC that Bitcoin’s low correlation with stocks and bonds makes it a potential portfolio diversifier. “In our opinion, there is room for both bitcoin and gold,” he said.

Meanwhile, DeVere Group CEO Nigel Green described Bitcoin’s recent climb above $125,000 as a sign that the crypto market is maturing.

“Volatility still exists, but it is now productive volatility,” Green said. “The hands holding bitcoin have become stronger, more institutional, and more patient.”

UK to Appoint ‘Digital Markets Champion’ to Oversee Blockchain Transition in Finance

The UK government plans to appoint a “digital markets champion” to accelerate the nation’s shift toward blockchain-based financial infrastructure, according to remarks by Economic Secretary to the Treasury Lucy Rigby.

The new official will coordinate private sector efforts on tokenizing wholesale financial instruments and ensure that innovation aligns with the country’s regulatory framework.

Speaking at the Digital Assets Week conference in London, Rigby also announced the creation of the Dematerialisation Market Action Taskforce, a new body focused on replacing paper-based share certificates with digital records to enhance market efficiency.

The initiative is part of the UK’s Wholesale Financial Markets Digital Strategy, which outlines plans for issuing blockchain-based sovereign debt known as “digital gilts” under the DIGIT framework.