Hargreaves Lansdown Enters Crypto ETN Market with Cautionary Approach
Hargreaves Lansdown, the UK's largest investment platform, has opened its doors to cryptocurrency exchange-traded notes (ETNs) after nearly a year of regulatory changes.
The move follows the Financial Conduct Authority's (FCA) decision in October last year to lift its four-year ban on retail investors buying crypto ETNs. Hargreaves Lansdown has listed nine bitcoin and ether ETNs with annual fees ranging from zero to 0.35 per cent, issued by prominent financial institutions such as BlackRock's iShares, WisdomTree, and Invesco.
The platform will restrict access to its Advanced Investing service for more sophisticated investors who pass an appropriateness test and observe a 24-hour cooling-off period. This reflects the regulatory and platform-imposed safeguards in place to protect clients from potential risks associated with highly volatile cryptocurrencies.
Despite Hargreaves Lansdown's entry into the market, broader UK retail demand remains limited, according to WisdomTree. The company notes that wider growth depends on investor education and broader platform access, as well as HM Revenue & Customs' decision to exclude newly purchased crypto ETNs from stock-and-shares Isas.