"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."
"Hargreaves Lansdown, the largest retail investment platform in the U.K., which has about $225 billion in assets under management, issued a surprisingly harsh warning to its customers: Stay away from Bitcoin. The cryptocurrency has " no intrinsic value," it told its clients, and should not be included in their life savings and retirement plans. HL is the third large financial institution recently to remind customers that crypto might be based on nothing, following Deutsche Bank and Elliott Management."
Hargreaves Lansdown, a major U.K. retail investment platform with about $225 billion in assets under management, warned customers to avoid Bitcoin and said the cryptocurrency has no intrinsic value and should not be included in life savings or retirement plans. The firm noted that while longer-term Bitcoin returns have been positive, the asset has experienced periods of extreme losses and is much more volatile and risky than stocks or bonds. HL said Bitcoin is not an asset class, lacks characteristics for growth or income portfolios, and that performance assumptions for crypto are not analyzable. Deutsche Bank and Elliott Management issued similar warnings. The critique rests on crypto lacking underlying legal or economic rights that give other assets fundamental value, leaving price driven primarily by supply and demand. HL will nonetheless offer crypto trading on its platform.
Read at Fortune Crypto
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