Hargreaves Lansdown, one of the UK’s largest investment platforms, has introduced trading for nine crypto exchange-traded notes (ETNs), giving millions of UK investors the ability to gain exposure to Bitcoin and Ether through regulated financial products. This shift comes after regulatory changes allowed retail access to these instruments, marking a notable change for a firm known for its conservative approach to the cryptocurrency sector.
Crypto ETNs now available through HL Advanced Investing
The new offering, accessible via Hargreaves Lansdown’s Advanced Investing account, covers nine ETNs tracking the performance of Bitcoin and Ether. These ETNs allow investors to benefit from potential price movements of cryptocurrencies without needing to manage private wallets or keys themselves. Annual product fees for these ETNs range from 0% to 0.35%, while investors may also face dealing charges when trading.
With around 2 million UK clients, Hargreaves Lansdown’s decision could significantly expand retail access to regulated crypto investments. To start trading, eligible clients must complete an appropriateness assessment and observe a 24-hour cooling-off period prior to making their first purchase. The company highlights that crypto ETNs remain high risk, stating investors could lose their entire investment.
The company emphasizes that crypto ETNs are high-risk products meant for experienced investors, stressing that clients should carefully consider the risks and only allocate a small part of their portfolio to these instruments.
How crypto ETNs differ from direct crypto ownership
Unlike buying coins directly, investing in crypto ETNs means purchasing a listed financial product that tracks the underlying asset’s price. Hargreaves Lansdown works with custodians to hold the cryptocurrency, and the ETN’s value follows the asset minus fees. This arrangement may attract investors who want regulated access and broker support, yet wish to avoid managing crypto wallets and private keys themselves.
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AAPLThe regulatory changes, implemented by the Financial Conduct Authority (FCA) in October 2025, allowed retail investors access to certain crypto ETNs listed on recognized UK exchanges. The FCA designates these as Restricted Mass Market Investments, subject to specific marketing and financial-promotion restrictions. However, the authority maintains that risks—including total loss—persist even as access widens.
Mini dictionary: ETN (Exchange-Traded Note) – A debt security traded on exchanges, where the return is linked to the performance of a market index or asset, in this case cryptocurrencies. Investors do not own the underlying asset but have exposure through the note.
Regulatory landscape and ongoing risks
Hargreaves Lansdown’s new launch reverses an earlier caution; the platform had previously rejected cryptocurrency as a distinct asset class. Regulators maintain a cautious stance despite the UK retail market becoming more open. The FCA notes that while crypto ETNs are now available to individual investors following years of restrictions, other instruments such as crypto derivatives—including futures and options—are still off-limits for retail customers due to elevated risks.
This expanded access could spark competition among ETN issuers on fees, product innovation, and liquidity. Yet experts warn that ETN participation does not guarantee profit, and issuer-related risks, including potential default, must not be overlooked.
| Feature | Direct Crypto Ownership | Crypto ETN via HL |
|---|---|---|
| Custody | Investor-managed wallet | Held by custodian |
| Private Key Management | Investor responsibility | Not required |
| Regulatory Oversight | Limited | FCA-regulated |
| Investor Protections | Variable | No FSCS coverage |
Investor suitability and next steps
Hargreaves Lansdown says its crypto ETNs are targeted primarily at experienced investors who fully understand the associated risks. These products do not benefit from the Financial Services Compensation Scheme, meaning investors are unprotected if issues arise with either the ETN issuer or custodian. The platform suggests that crypto ETNs should be treated as a small, speculative component of a diversified investment strategy.
Future developments will depend on market demand, further product launches, and ongoing changes in UK regulation. The FCA has indicated it will continue monitoring developments in the crypto ETN space, as well as the broader market for derivatives.
