"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 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. Performance assumptions are not possible to analyse for crypto, and unlike other alternative asset classes it has no intrinsic value,"
"The argument that crypto has no fundamental value is based on the view that other assets-stocks, bonds, cash, property, or derivatives thereof-usually entitle holders to an underlying right, such as dividends, interest, land, or other legal rights. Crypto, by contrast, is merely a medium of exchange whose price reflects only the balance of supply and demand."
Hargreaves Lansdown, the largest UK retail investment platform with about $225 billion in assets under management, warned customers to avoid Bitcoin, calling it highly volatile and lacking intrinsic value. HL stated Bitcoin is not an asset class, should not be included in portfolios for growth or income, and should not be relied upon to meet financial goals; performance assumptions cannot be analysed. HL will begin offering crypto trades. Deutsche Bank described Bitcoin as backed by nothing while suggesting possible future central bank reserve use. Elliott Management warned of an inevitable collapse, asserting Bitcoin has no substance. The core argument cites lack of underlying legal rights compared with other assets.
Read at Fortune
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