Hargreaves Lansdown Adds Bitcoin and Ether ETNs for UK Investors

Hargreaves Lansdown, the U.K.’s largest retail investment platform, has started offering nine Bitcoin and Ether exchange-traded notes (ETNs), marking a significant change in its approach to cryptocurrency investments.

The Bristol-based investment firm, which serves around two million investors and oversees more than $200 billion in assets, announced Thursday that its platform now provides access to crypto ETNs from major asset managers including BlackRock’s iShares, CoinShares, WisdomTree, 21Shares, Invesco and Bitwise.

Annual fees for the newly available Bitcoin and Ethereum investment products range from 0% to 0.35%.

The rollout represents a notable shift for Hargreaves Lansdown. Less than a year ago, the company cautioned retail clients against cryptocurrency investing, arguing that Bitcoin should not be considered a traditional asset class.

At the time, the platform said Bitcoin lacked the intrinsic characteristics typically associated with investments designed to generate long-term growth or income. It also highlighted Bitcoin’s history of substantial price declines and warned investors against depending on the cryptocurrency to achieve their financial objectives.

However, changes to U.K. cryptocurrency regulations have opened the door for Hargreaves Lansdown to provide regulated digital asset products while maintaining safeguards for retail investors.

The Financial Conduct Authority (FCA) lifted its four-year restriction on retail access to crypto ETNs in October. Under the updated regulatory framework, investment platforms must determine whether customers have sufficient knowledge to understand the risks associated with cryptocurrency products.

Hargreaves Lansdown therefore requires first-time buyers to complete an appropriateness assessment before trading crypto ETNs. Investors must also observe a 24-hour waiting period before making their first purchase.

The FCA continues to emphasize that crypto investments are highly risky and that investors could lose their entire investment.

Hargreaves Lansdown’s decision could broaden mainstream cryptocurrency adoption in the U.K. by giving its two million clients regulated exposure to Bitcoin and Ether without requiring them to use a dedicated crypto exchange. The addition of products from major investment managers also brings digital asset exposure further into the traditional retail investing market.