CHONGQING, CHINA – JULY 17: In this photo illustration, a person holds a physical representation of a Bitcoin (BTC) coin in front of a screen displaying a candlestick chart of Bitcoin’s latest price movements on July 17, 2025 in Chongqing, China. (Photo illustration: Cheng Xin/Getty Images)
Chen Xin | Getty Images News | Getty Images
A major UK trading platform has issued a stern warning to investors looking to profit from relaxed crypto regulations, saying they should not include cryptocurrencies in their portfolios.
A long-standing ban on retail investors accessing ETN cryptocurrencies in the UK was lifted on October 8th. An ETN is a debt instrument tied to one or more specific assets. In this case, using a regulated exchange would expose traders to digital tokens.
The new rules prompted a warning from Hargreaves Lansdown, the UK’s largest retail investment platform, which urged retail investors in the UK to be cautious.
“HL Investment’s view is that Bitcoin is not an asset class, and we do not believe that cryptocurrencies have characteristics that mean they should be included in portfolios for growth or income, and not relied on to help clients achieve their financial goals,” Hargreaves Lansdown said in a statement.
“It is impossible to analyze the performance assumptions of cryptocurrencies, and unlike other alternative asset classes, cryptocurrencies have no intrinsic value.”
When UK authorities announced earlier this year that they were lifting the ETN ban, they claimed the move would support “the growth and competitiveness of the UK crypto industry.” This was hailed by crypto companies as a major step forward for the UK cryptocurrency industry.
The government also decided on Wednesday to allow investors to hold crypto ETNs in stocks and shares ISA accounts, which can invest up to £20,000 ($26,753) a year tax-free.
big profits and big losses
Cryptocurrencies are decentralized and therefore not regulated by a central authority such as a government, but they do have their detractors and are notoriously volatile in price. In 2022, the so-called “crypto winter” cost investors $2 trillion in losses. But Bitcoin, the most commonly traded cryptocurrency, has delivered big gains to early investors, last trading at around $121,508.
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Still, Hargreaves Lansdown urged investors to consider the risks associated with all cryptocurrencies, including Bitcoin.
“While Bitcoin’s long-term returns are positive, Bitcoin has experienced some extreme losses and is a highly volatile investment, making it far riskier than stocks and bonds,” the company said in a statement this week.
However, the company said it recognizes that some traders want to “speculate in cryptocurrencies ETN” and will therefore offer that opportunity to “deserving customers” starting in early 2026.
institutional support
Market watchers have long been divided over cryptocurrencies, with some major institutions investing heavily in digital assets while others have warned against them.
Morgan Stanley said last month that it was close to offering crypto trading to retail investors through its E-Trade division. The bank was the first major US bank to offer wealthy customers access to Bitcoin funds, a move that has since been followed by other banks.
Meanwhile, JPMorgan plans to get involved in the stablecoin space despite CEO Jamie Dimon’s vocal criticism of cryptocurrencies. Billionaire investor Warren Buffett has also publicly criticized cryptocurrencies.
Chris Mellor, head of EMEA ETF equity product management at Invesco, told CNBC on Thursday that he believes digital assets can offer investors a hedge against the volatility of more traditional asset classes.
“Bitcoin and other cryptocurrencies are sometimes considered ‘digital gold,’ raising the question of whether Bitcoin could one day replace gold as a non-fiat asset of choice,” he said in an email. “In our opinion, there is room for both in a portfolio. With the caveat that correlations can change, we have observed in recent months that Bitcoin has a very low correlation with stocks, US Treasuries, and gold.”
Meanwhile, Nigel Green, CEO of financial consultancy De Vere Group, argued that Bitcoin’s recent rise above $125,000 is a sign that digital assets are entering the financial mainstream.
“Investors are no longer treating Bitcoin as a commodity on the edge of the market,” he told CNBC. “Volatility still exists, but it’s now productive volatility, the kind that comes with price discovery in mature markets. Short-term fluctuations are inevitable when capital is rotating on this scale.”
Green called this a “structural realignment rather than a temporary rally” for Bitcoin, noting that the Trump administration’s favorable policy mix further supports Bitcoin’s credibility.
“The hand holding Bitcoin has become stronger, more institutional and more patient,” he added. “For investors with a strategic perspective, Bitcoin remains a solid and durable investment.”
—CNBC’s Ryan Browne and Hugh Son contributed to this article.
