Hargreaves Lansdown, the UK’s largest retail investment platform, has warned investors against over-reliance on crypto, stating that Bitcoin is not a traditional investment asset and lacks the necessary characteristics to be part of portfolios for either growth or income.
In an official statement, the company emphasized that cryptocurrencies lack intrinsic value and are difficult to predict compared to other asset classes, warning against relying on them as a tool to achieve clients’ financial goals.
Although Bitcoin has posted positive returns over the long term, Hargreaves Lansdown noted that the currency has experienced sharp and frequent periods of losses, making it a highly volatile and riskier investment than stocks or bonds, according to a report published by CNBC.
This warning comes days after the lifting of a year-long ban on retail investors trading in exchange-traded debt instruments linked to digital assets, a decision industry players described as a breakthrough for the UK crypto industry, but one that also highlights the need for caution when dealing with these high-risk instruments.
