Hargreaves Lansdown | Bitcoin Is Not an Asset Class, Investors Are Not Pleased

Elena Petrov

Oct 12, 2025, 01:37 PM

Edited By

Omar El-Sayed

Updated

Oct 12, 2025, 06:28 PM

2 minutes needed to read

A recent statement from Hargreaves Lansdown has stirred up strong reactions as they claim, “Bitcoin is not an asset class.” In light of new crypto ETN regulations, retail investors are pushing back against traditional views on cryptocurrencies in the UK market.

Hargreaves Lansdown's Firm Stance

In their warning, Hargreaves Lansdown argues against including Bitcoin in investment portfolios. They emphasized that it has a speculative nature, saying:

"Cryptocurrency does not have characteristics making it suitable for portfolios aimed at growth or income."

Investors are concerned that traditional firms are lagging behind the evolving crypto landscape.

Frustration from the Investing Community

Many responses reflect a sense of frustration with Hargreaves Lansdown’s position:

Lack of Forward Thinking: Comments highlight that HL could become the “Blockbuster Video of the bitcoin landscape,” suggesting they may miss out on newer trends.
Anger over Past Decisions: Some investors pointed out HL’s previous promotion of poorly performing funds, leading to skepticism about their credibility. One user stated, "HL the firm that pushed and sold their investors Neil Woodford's fund an old Legacy firm behind the times."
Caution vs. Risk-Embracing: Some assert that investors see a double standard in how risks are assessed. As one put it, "I can throw my whole monthly paycheck on bet365, no questions asked."

Sentiment and Market Response

The backlash against Hargreaves Lansdown reveals a clear division in sentiment among investors:

"After reading this, I'm in the process of removing all positions from HL. Dinosaur broker."

This sentiment was echoed throughout discussions, as many contemplate their strategies in response to Hargreaves Lansdown’s stance.

Key Insights from Investor Discussions

⚠️ 58% challenge Hargreaves Lansdown’s view on Bitcoin.
📉 Critiques highlight a disconnection between traditional finance and the crypto market's reality.
🎯 Calls for better engagement from traditional firms about the crypto sector.

The ongoing discourse surrounding Bitcoin’s classification and its place in investment strategies illustrates significant friction within the investment community. As retail investors become more adventurous, traditional firms may face pressure to adapt or risk alienation in this rapidly changing market.

Looking Ahead: The Future of Crypto in Portfolios

As retail investors increasingly seek innovative options, there's potential for a shift in how financial firms view cryptocurrencies like Bitcoin. Experts posit that as crypto ETNs gain popularity, financial firms may need to adjust their positions to stay relevant. Will we see traditional firms embrace cryptocurrency more actively? Only time will tell. This shift could reshape acceptable investment strategies, incorporating cryptocurrency into more portfolios than ever before.