Hargreaves Lansdown Adjusts Strategy, Introduces Bitcoin Trading Options

Hargreaves Lansdown, a prominent British financial services firm, has recently revised its stance on cryptocurrency, now allowing retail investors to purchase bitcoin. This shift comes nearly one year after the firm had characterized bitcoin as “not an asset class.”

According to the investment firm’s website, it is now offering bitcoin and various other crypto exchange-traded notes (ETNs) to investors. ETNs are investment funds that are traded on stock exchanges and are designed to track the prices of digital assets.

This development follows the firm’s previous advisories against bitcoin investments, despite the fact that it manages approximately £173 billion (over $233 billion) in assets.

The firm previously stated, “While longer-term returns of Bitcoin have been positive, Bitcoin has experienced several periods of extreme losses and is a highly volatile investment — much riskier than stocks or bonds.”

Moreover, it had asserted, “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.”

Currently, several ETNs that track the price of bitcoin and other cryptocurrencies are available, with the firm cautioning users that “crypto ETNs are considered high-risk and may be volatile.”

In 2024, the U.S. Securities and Exchange Commission approved bitcoin exchange-traded funds (ETFs) for investors after a decade-long refusal to endorse such products.

These funds achieved the most successful debut in the history of ETFs, as investors who were previously unable to gain exposure to this asset class quickly began purchasing the products.

Managed by leading asset managers and financial institutions, such as BlackRock, Fidelity, and Morgan Stanley, these investment vehicles now collectively oversee assets exceeding $100 billion.

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