Key Takeaways
- Hargreaves Lansdown warned clients that cryptocurrencies should not be relied upon to meet long-term financial goals.
- The comments come as the U.K.’s Financial Conduct Authority lifted its 2021 ban on crypto exchange-traded notes (ETNs) for retail investors.
- Despite the regulatory change, the firm has remained cautious on offering regulated crypto products unlike its rivals.
British investment company Hargreaves Lansdown has cautioned U.K. investors against investing too heavily in cryptocurrencies. This follows the Financial Conduct Authority’s (FCA) decision to lift its ban on crypto exchange-traded notes (ETNs).
The firm, which controls nearly a third of the British investment market, warned clients that crypto should not “be relied upon to help clients meet their financial goals.”
FCA Lifts Ban on Crypto ETNs
On October 8, the FCA lifted its 2021 ban on the sale of crypto ETNs to retail investors.
The decision allows recognised investment exchanges to once again list these products for all market participants.
Crypto ETNs are debt instruments that mirror the price of digital assets such as Bitcoin or Ethereum, enabling investors to gain exposure to cryptocurrencies without directly owning them.
David Geale, the FCA’s Executive Director of Payments and Digital Finance, said:
“Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood. In light of this, we’re giving consumers more choice while ensuring appropriate safeguards are in place.
“This should help people make informed decisions about whether the level of risk is suitable for them.”
Warnings Against Crypto
In a statement earlier this week, reported by Financial Times, Hargreaves Lansdown said that despite the FCA’s reversal, Bitcoin still had “no intrinsic value.”
“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,” the firm said.
According to the Financial Times, Hargreaves Lansdown has taken the strictest stance among major investment firms following the ban lift.
Rival platforms Saxo and Interactive Investor plan to begin offering cETNs as soon as next week.
However, Hargreaves Lansdown acknowledged that some of its clients “will wish to speculate with cryptocurrency [products].”
The company said it would spend the coming months assessing the risks associated with cETNs and expects to allow a limited number of customers to access these products “from early next year.”
Young Investors
The FCA’s decision to lift the ban coincides with rising interest in crypto investment options across the U.K., particularly among younger investors.
A survey shared with CCN by trading platform IG found that 30% of U.K. adults are open to investing in crypto ETNs, a figure that rises to 50% among 18- to 24-year-olds.
That enthusiasm far exceeds current ownership rates.
According to the FCA’s 2024 consumer survey, only 12% of Britons currently hold crypto assets, with an average portfolio value of about £1,842.
The IG report also noted that potential tax advantages linked to ETN investments could further drive demand as these products return to U.K. exchanges.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
