Hargreaves Lansdown Enters Crypto Market with Regulated ETNs

Hargreaves Lansdown, Britain's largest investment platform, has started offering crypto products to its two million customers. The move comes nearly a year after the City watchdog lifted its ban on everyday investors buying crypto-linked products.

Instead of allowing customers to hold digital coins directly, Hargreaves Lansdown is offering exposure through regulated, stock-market-listed instruments called crypto ETNs (Exchange-Traded Notes). These notes trade on the stock market and mirror the price of a cryptocurrency without requiring direct ownership or involvement with exchanges.

An ETN is technically a form of debt issued by a bank or financial firm, which promises to track the crypto price minus fees. This means that investors are not just betting on Bitcoin or Ethereum but also trusting the issuer's stability and solvency. If the issuer collapses, customers could lose their money even if the crypto itself hasn't moved.

Hargreaves Lansdown is not the only platform offering crypto ETNs; other providers include iShares, WisdomTree, 21Shares, Invesco, CoinShares, and Bitwise. The platform charges 0.35% a year to hold these notes, capped at £12.50 a month.