Bitcoin, the first and largest cryptocurrency by market capitalization, has delivered major returns to early investors, currently up 250,118,183% from a July 2010 all-time low of $0.04865, according to CoinMarketCap data, while trading at $121,673 at press time.
Despite this, Hargreaves Lansdowne — regarded as the U.K.’s biggest retail investment platform — has warned investors about the risks attached to cryptocurrencies, including Bitcoin.
“While longer-term returns of bitcoin have been positive, bitcoin has experienced several periods of extreme losses and is a highly volatile investment — much riskier than stocks or bonds,” the company said in its statement this week.
On Oct. 8, a longstanding ban on retail investors accessing crypto exchange-traded notes (ETNs) was lifted in the U.K. This move has sparked a warning from Hargreaves Lansdowne, which urged retail investors to be cautious.
ETN ban lift sparks reaction
Exchange-traded notes (ETNs) are debt instruments related to one or more specified assets, giving traders exposure to digital tokens using a regulated exchange.
According to new rules passed Wednesday, U.K. investors will now be able to hold crypto ETNs in “stocks and shares” ISA accounts, where up to £20,000 ($26,753) a year can be invested tax-free.
Following the lifting of the ban on crypto exchange-traded notes (ETNs) in the U.K., Hargreaves Lansdowne shares its viewpoint on Bitcoin, saying it was not an asset class.
The U.K. trading platform issues a stark warning to investors hoping to profit from the easing of crypto rules: cryptocurrencies should not be in your portfolio.
“The HL Investment view is that bitcoin is not an asset class, and we do not think cryptocurrency has characteristics that mean it should be included in portfolios for growth or income and shouldn’t be relied upon to help clients meet their financial goals,” Hargreaves Lansdowne said, according to CNBC.
Source: https://u.today/bitcoin-warning-issued-uk-platform-highlights-risks-for-investors
