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      Hargreaves Lansdown to Launch Crypto ETNs Following FCA Ban Lift

      Hargreaves Lansdown, the largest retail investment platform in the UK, is set to offer its clients access to physically backed Bitcoin and Ethereum exchange-traded notes (ETNs) after the Financial Conduct Authority (FCA) lifted a four-year ban on such products. The FCA's decision, made on October 8, 2025, allows retail customers to invest in these crypto assets through recognized exchanges, marking a significant shift in the regulatory landscape for cryptocurrency investments in the UK.

      Despite this new offering, Hargreaves Lansdown has cautioned its more than two million clients that Bitcoin is 'not an asset class' and has emphasized the lack of intrinsic value in cryptocurrencies. The ETNs will be classified as Restricted Mass Market Investments, which come with specific consumer protections, including a portfolio exposure cap of approximately 10%. Clients will not own actual cryptocurrencies, as there will be no wallets or direct custody of digital assets involved in these transactions.

      The FCA initially banned retail access to crypto derivatives and ETNs in January 2021 due to concerns over consumer harm and market volatility. Following the ban's reversal, the UK quickly became the third-largest market for crypto ETNs in Europe, with the London Stock Exchange already listing several products for professional investors prior to the regulatory change. Hargreaves Lansdown aims to launch its crypto ETNs in early 2026, pending the establishment of compliance protocols to assess client suitability for these investments.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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