Bitcoin News Today: Institutional Divide Over Bitcoin Widens as Hargreaves Cautions on Volatility

Hargreaves Lansdown, the UK's largest retail investment platform, has issued a stark warning to its clients, advising against allocating Bitcoin to their portfolios due to its "no intrinsic value" and high volatility. The firm, managing approximately $225 billion in assets, stated that Bitcoin does not qualify as a traditional asset class and should not be relied upon for financial goals such as retirement planning or portfolio growth Fortune^[1]. This caution aligns with recent statements from other major institutions, including Deutsche Bank and Elliott Management, which have similarly questioned Bitcoin's foundational value Fortune^[1].

The warning comes amid regulatory shifts in the UK, where the Financial Conduct Authority (FCA) lifted a four-year ban on retail access to crypto exchange-traded notes (ETNs) on October 8, 2025 Citywire^[2]. Despite this regulatory easing, Hargreaves Lansdown emphasized that cryptocurrencies lack the characteristics of established asset classes like equities or bonds, which typically confer rights to dividends, interest, or legal claims. The firm highlighted Bitcoin's historical volatility, noting it has experienced "extreme losses" alongside periods of gains, making it "much riskier than stocks or bonds" Fortune^[1].

While Hargreaves Lansdown rejects Bitcoin's inclusion in long-term portfolios, it acknowledged investor demand by announcing plans to offer crypto ETNs to "appropriate clients" from early 2026, subject to suitability assessments Business Standard^[3]. This move reflects a cautious approach to balancing regulatory compliance with market trends, as the UK government also permitted crypto ETNs to be held in tax-free ISA accounts .

Market data underscores the firm's concerns. Bitcoin, currently trading at $121,000, has surged 30% this year but remains volatile, having previously reached $126,198 before a recent decline Business Standard^[3]. The broader cryptocurrency market, valued at $2.8 trillion as of October 2025, continues to attract institutional interest, with 38% of traditional hedge funds now allocating capital to digital assets, up from 21% in 2023 . However, critics argue that Bitcoin's price remains sentiment-driven, evidenced by a $2 trillion loss during the 2022 "crypto winter."

The institutional divide over crypto persists. While Hargreaves Lansdown and Warren Buffett dismiss Bitcoin's value, others like Morgan Stanley and JPMorgan are integrating digital assets into their services. Meanwhile, analysts like Nigel Green of DeVere Group argue that Bitcoin's recent price movements signal maturing market dynamics, with volatility now reflecting "price discovery" rather than speculative bubbles .