‘Bitcoin is not an asset class’: UK’s biggest investment platform has a stark warning for investors

A major trading platform in the U.K. has issued a stark warning to investors hoping to cash in on relaxed crypto rules: cryptocurrencies should not be in your portfolio.

A longstanding U.K. ban on retail investors being able to access crypto exchange-traded notes (ETNs) was lifted on Oct. 8. Exchange-traded notes are debt instruments linked to one or more specified assets. In this case, they give traders exposure to digital tokens through the use of a regulated exchange.

The new rules sparked a warning from Hargreaves Lansdowne — the U.K.’s biggest retail investment platform — which urged British retail investors to be cautious.

“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,” Hargreaves Lansdowne said in a statement.

“Performance assumptions are not possible to analyse for crypto, and unlike other alternative asset classes it has no intrinsic value.”

When U.K. officials announced earlier this year that the ETN ban would be overturned, they argued the move would support “the growth and competitiveness of the U.K.’s crypto industry.” It was hailed by crypto firms as a major breakthrough for the sector in Britain.

The government also ruled on Wednesday that investors will be able to hold crypto ETNs in stocks and shares ISA accounts, an account where up to £20,000 ($26,753) a year can be invested tax-free.