Hargreaves Lansdown rolls out bitcoin trading through crypto ETNs

Hargreaves Lansdown is letting retail investors buy bitcoin through crypto exchange-traded notes. The firm's website offers bitcoin and other cryptocurrency ETNs to investors. ETNs are investment funds that trade on stock exchanges and track digital asset prices. The move comes nearly one year after Hargreaves Lansdown said bitcoin was not an asset class. Hargreaves Lansdown manages nearly £173 billion in assets. The firm manages over $233 billion in assets. The firm previously said bitcoin had produced positive longer-term returns. It also said bitcoin had experienced several periods of extreme losses. The firm called bitcoin highly volatile and much riskier than stocks or bonds. It said cryptocurrency should not be included in portfolios for growth or income. It also said cryptocurrency should not be relied on to help clients meet their financial goals. A number of ETNs tracking bitcoin and other cryptocurrencies are now available. Hargreaves Lansdown warns users that crypto ETNs are considered high-risk and may be volatile. The Securities and Exchange Commission approved bitcoin exchange-traded funds for investors in 2024. The regulator had rejected the products for a decade before that approval. The funds had the most successful debut in ETF history. Investors who had previously been unable to buy exposure to the asset class rushed to buy the products. BlackRock, Fidelity, and Morgan Stanley are among the asset managers and banks running the investment vehicles. The vehicles now collectively manage over $100 billion in assets.