A major UK investment firm has warned its customers that Bitcoin is not an asset class. This follows crypto-positive moves in the UK that will allow the introduction of crypto ETN products.
One of the United Kingdom’s largest investment companies has issued a statement, confirming that it does not consider Bitcoin an asset class. Hargreaves Lansdown is a major British investment company, and it has warned its customers against heavy investments in cryptocurrency. They have stated that it should not “be relied upon to help clients meet their financial goals.”
The Widespread Adoption of Cryptocurrency
This is in stark contrast to many governments, corporations, and financial institutions that have been voraciously acquiring Bitcoin over the last year. The bitcoin price usd stands at around $121,301 as of October 10th. This is a slight retracement after a high of $124,310 on Tuesday, the 7th. All of this has been the result of myriad factors, including economic and global political tensions. Yet at the heart of this, Bitcoin has moved from a risk asset class to a safe haven, rising in tandem with gold.
The company, which owns a third of the British investment market, added, “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 and shouldn’t be relied upon to help clients meet their financial goals.” Their statement then went on to further explain, “Performance assumptions are not possible to analyse for crypto, and unlike other alternative asset classes, it has no intrinsic value.”
United Kingdom Introduces Crypto ETN Products
The move follows the Financial Conduct Authority’s recent move to lift its ban on crypto-based exchange-traded notes, also known as ETN-s. This was removed on October 8th, and was hailed as a major breakthrough in positioning the UK as a major player in the digital future of global finance. In fact, the official reason for lifting the ban was that it would support “the growth and competitiveness of the U.K.’s crypto industry.”
An ETN is a debt security. Issued by a financial institution, they track the performance of an investment strategy or index. Traded on stock exchanges, they have prices that fluctuate rapidly throughout the day. When an ETN is purchased, the issuer promises to pay the amount reflected in the index at a given maturity date. In the case of cryptocurrency, they allow traders to invest in digital currencies using everyday exchanges.
Added to this was the stipulation that investors will be able to hold crypto-based ETN products in a stocks and shares interest savings account (ISA). This allows UK citizens to invest the equivalent of $26,753 per year tax-free.
Hargraves Lansdown’s view is in contrast to many other investment firms, which have taken a more positive approach. Many of the competitors plan to launch crypto ETN products in the next few weeks. Hargrave’s Lansdown has said they will spend the next few weeks assessing the risks and may allow certain customers to access them in the early months of 2026.
The UKs Attitude to Crypto
The UK’s attitude and sentiment towards cryptocurrency remains patchy at various age groups. A survey by one trading platform found that 30% of UK adults are open to investing in cryptocurrency ETN products. However, in the younger age demographic of 18 to 24-year-olds, this figure reaches 50%. A recent study of the United Kingdom also found that around 12% of citizens own crypto assets, equating to an average of £1,842.
Crypto markets have been extremely buoyant over the last few weeks, despite economic and global uncertainty. October and November are traditionally bullish months for cryptocurrency. Bitcoin’s implied volatility has risen to the highest level in two and a half months. This is the market forecast of future price fluctuations, based on the value of options contracts. It suggests that the historical seasonal strengths shown in the run-up to the holiday season will happen once again. Statistics show that an average rise of 6% during the two late weeks in October, with surges of 45% in November.
To add to this sentiment, Binance also noted that markets are pricing in near-certainty of a Fed rate cut in October and an 88% chance of another in December. With Bitcoin historically showing strong seasonal performance in October, parallels are being drawn to the 2013 rally during a previous shutdown.
While the views of major investment firms carry a lot of weight, these comments need to be viewed in context. With more adoption across the globe, from states to corporations, it seems unlikely that Bitcoin is going anywhere. Short-term volatility may remain, but the long-term future of Bitcoin seems to be now institutionalized in our digital future.