UK's Hargreaves Lansdown lists crypto ETNs after reversing stance

Major UK platform joins crypto wave

Hargreaves Lansdown, the United Kingdom's largest retail investment platform, has started offering nine exchange-traded notes (ETNs) tied to bitcoin and ether. The move marks a significant shift for the company, which warned clients against cryptocurrency investments less than a year ago.

The platform now gives its two million investors access to these products through a mainstream service. ETNs are investment products that track the price of an asset, like bitcoin, but trade on a stock exchange like a regular share.

Regulatory change drives the listing

The decision comes 11 months after the Financial Conduct Authority (FCA), the UK's financial watchdog, lifted a four-year ban on crypto ETNs for retail investors. The FCA's October decision paved the way for regular investors to hold these products in tax-free accounts like pensions and ISAs.

Key points

• Hargreaves Lansdown is offering nine bitcoin and ether ETNs.
• Products come from major asset managers including BlackRock, CoinShares, WisdomTree, 21Shares, Invesco, and Bitwise.
• Annual fees for the products range from 0% to 0.35%.
• The firm still advises that bitcoin is "not an asset class" and carries a risk of extreme losses.

Strict safety checks required

Under new FCA rules, investment firms must ensure clients understand the risks before trading crypto products. To comply, Hargreaves Lansdown requires new buyers to complete an appropriateness assessment. This checks if the investor has the knowledge to understand potential losses, including the risk of losing their entire investment.

Additionally, there is a mandatory 24-hour waiting period after passing the assessment before a client can buy the product.

Why this matters

The move is significant because Hargreaves Lansdown manages over $200 billion in assets. By bringing bitcoin and ether exposure to a traditional investment platform, the firm allows regular savers to access crypto without using dedicated cryptocurrency exchanges.

Sources

• CoinDesk