Hargreaves Lansdown, the largest investment platform in the UK, has issued a strong warning to investors about Bitcoin, stating that it should not be considered an asset class. This statement comes just after the UK lifted a four-year ban, allowing retail investors to access cryptocurrency exchange-traded notes (ETNs). Despite the renewed opportunity for investors to trade crypto ETNs on regulated platforms, Hargreaves Lansdown maintains a cautious stance.

The company has emphasized that, in their view, Bitcoin lacks the fundamental characteristics of traditional asset classes. It has no intrinsic value and cannot be reliably analyzed for performance in the same way as stocks or bonds. Because of this, Hargreaves Lansdown does not believe cryptocurrencies can help investors meet financial goals such as growth or income through typical diversified portfolios.

Interestingly, despite these warnings, Hargreaves Lansdown will still make crypto ETNs available to its clients in the near future. However, the platform plans to enforce strict measures before allowing investment. Clients must complete a suitability assessment, and restrictions will apply to the amount that can be invested—potentially capping crypto holdings at 10% of a total portfolio.

The resurgence of retail access to crypto products has followed a period of significant growth in the market. Bitcoin recently reached new all-time highs, and investor sentiment remains strong despite ongoing concerns over volatility and the absence of intrinsic value. The UK’s regulator, the Financial Conduct Authority (FCA), acknowledges that while more mature and regulated products now exist, cryptocurrencies remain very risky and unsuitable for most investors. Investors are reminded that dramatic price swings and the chance of losing all their invested capital are still real possibilities.

Hargreaves Lansdown is not alone among major financial institutions taking a conservative view of crypto, even as they prepare to offer related products. While some banks and investment firms have criticized digital assets for their speculative nature, many now provide ways for clients to gain exposure under strict conditions.

Investors considering an allocation to cryptocurrencies should do so cautiously, ensure that they fully understand the risks, and keep such holdings as a small portion of a well-diversified portfolio. The revival of crypto ETNs in the UK signals growing acceptance of digital assets in traditional finance, but the warnings from leading investment platforms underline the need for measured, informed decision-making.