CHONGQING, CHINA – JULY 17: A person holds a physical Bitcoin (BTC) coin in front of a screen showing a candlestick chart of Bitcoin’s recent price trends on July 17, 2025, in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images)
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A significant trading platform in the U.K. has issued a clear warning to investors looking to benefit from new crypto regulations: cryptocurrencies are not suitable for your investment portfolio.
The longstanding U.K. restriction preventing retail investors from accessing crypto exchange-traded notes (ETNs) was lifted on October 8. ETNs are debt instruments tied to specific assets, allowing traders exposure to digital tokens through regulated exchanges.
This policy change led to a cautionary note from Hargreaves Lansdowne, the largest retail investment platform in the U.K., which advised investors to proceed with caution.
“The HL Investment view is that Bitcoin is not an asset class, and we believe cryptocurrencies lack the characteristics necessary for inclusion in portfolios aimed at growth or income,” stated Hargreaves Lansdowne.
They noted, “The potential for performance analysis in crypto is nonexistent, and unlike other alternative investments, it has no intrinsic value.”
Significant Gains and Losses
Cryptocurrencies operate outside the control of central authorities, making them subject to criticism and experiencing notorious price volatility. In 2022, a so-called “crypto winter” led to a loss of $2 trillion for investors. Even so, Bitcoin, the most widely traded cryptocurrency, has provided substantial returns for early investors and was recently trading around $121,508.
Despite this, Hargreaves Lansdowne urged caution concerning the risks attached to all cryptocurrencies, including Bitcoin. They stated, “While Bitcoin’s long-term returns have been favorable, it has faced extreme loss periods and is notably more volatile than stocks or bonds.”
Institutional Support
Cryptocurrencies have divided market observers, with some major institutions investing in digital assets while others raise alarms. Last month, Morgan Stanley announced it is approaching the launch of crypto trading for retail clients through E-Trade. Morgan Stanley was the first major U.S. bank to afford wealthy clients access to Bitcoin funds, a move subsequently followed by others.
In contrast, JPMorgan plans to engage with the stablecoin market despite CEO Jamie Dimon’s vocal criticism of cryptocurrencies. Likewise, billionaire investor Warren Buffett has openly criticized digital currencies.
Chris Mellor from Invesco expressed on Thursday that digital assets might serve as a hedge against fluctuations in traditional investments. He remarked, “Bitcoin and other cryptocurrencies are sometimes seen as ‘digital gold,’ and the potential exists for both to coexist in a portfolio.”
Nigel Green, CEO of DeVere Group, claimed that Bitcoin’s recent surge past the $125,000 mark indicates that digital assets are becoming mainstream. He stated, “Investors no longer view Bitcoin as merely a curiosity on the market’s edge. While volatility remains, it is now a more productive kind of volatility corresponding to a maturing market.”
Green characterized this as a “structural realignment,” fueled by favorable policies, and pointed out that the investors holding Bitcoin have become more institutional and patient, solidifying its status as a reliable investment for strategic thinkers.
— Contributions to this article were made by CNBC’s Ryan Browne and Hugh Son.
