British investment firm Hargreaves Lansdown has begun offering bitcoin and other cryptocurrency exchange-traded notes (ETNs) to its retail clients. This move marks a significant shift for the Bristol-based company, which manages assets totaling £173 billion, or over $233 billion.
Just last year, the firm publicly advised its customers against investing in bitcoin, labeling the cryptocurrency as highly volatile and not a suitable asset class for growth or income. The company stated at the time that digital assets should not be relied upon to meet financial goals.
Despite the new offering, Hargreaves Lansdown continues to warn its users that crypto ETNs are considered high-risk instruments. The firm's decision follows a broader trend in global markets, including the 2024 approval of bitcoin exchange-traded funds by the U.S. Securities and Exchange Commission.
The U.S. market for these investment vehicles has seen substantial growth, with funds managed by institutions like BlackRock, Fidelity, and Morgan Stanley now collectively holding over $100 billion in assets. These products have experienced a successful debut since their regulatory approval.
