Bitwise and Hargreaves Lansdown Collaborate to Launch Bitcoin ETPs in the UK
Bitwise, a prominent crypto asset manager, has announced a distribution agreement with Hargreaves Lansdown, enabling the introduction of its Bitcoin and Ethereum exchange-traded products (ETPs) to the UK’s leading retail investment platform. This partnership marks a significant step in expanding Bitwise's presence in the European market.
Initially, Bitwise launched four Bitcoin and Ethereum ETPs on the London Stock Exchange in April 2025, but these were only available to professional and institutional investors due to the Financial Conduct Authority's (FCA) previous restrictions. However, in October 2025, the FCA lifted its ban on retail access to crypto-backed ETPs, allowing retail investors to access Bitwise’s products starting October 21, 2025.
Hargreaves Lansdown plans to begin offering these ETPs to its clients in early 2026, pending necessary risk assessments. The platform has indicated it will adhere to FCA guidelines, which recommend a cap of 10% portfolio allocation to crypto products. To enhance appeal for cost-sensitive investors, Bitwise has reduced the Total Expense Ratio on its Core Bitcoin ETP (ticker: BTC1) by 75%, making it one of the most competitively priced Bitcoin ETPs in Europe.
The FCA's regulatory shift is noteworthy, as it previously banned the sale of crypto derivatives and exchange-traded notes to retail consumers in January 2021 due to concerns over volatility and asset valuation. The new framework allows for physically-backed crypto ETPs, meaning that each share is supported by actual Bitcoin or Ethereum held in custody. Bitwise’s offerings are structured to trade under both BaFin and FCA-approved prospectuses, providing cross-border regulatory credibility.
Reports indicate that by early 2026, Bitwise’s BTCE product had amassed approximately $800 million in assets under management, with BITC1 also reaching several hundred million dollars. The 10% allocation cap reflects the FCA's stance that crypto should be treated as a supplementary investment rather than a core holding.
Updated 22:00 UTC
New Insights on Bitcoin's Market Behavior
Bitcoin’s correlation with gold has reached its highest level in six years, indicating a growing trend among investors to hedge against currency debasement. This correlation is attributed to significant U.S. government interventions in the macroeconomic landscape.
According to Bitwise, Bitcoin experienced a notable surge last month following announcements from the U.S. Treasury Department regarding a substantial increase in government debt repurchases. This surge marked Bitcoin's best performance in three years and its third-best August on record.
André Dragosch, Bitwise’s European Head of Research, noted that the last time the bitcoin-gold correlation was this high was in 2020, during the fiscal and monetary stimulus measures implemented in response to the Covid crisis. He also pointed out that Bitcoin's correlation with the stock market has fallen to a one-year low, suggesting a decoupling between hard assets like Bitcoin and gold and the stock market.
This shift indicates that investors are increasingly viewing Bitcoin and gold as complementary hedges against currency debasement, rather than choosing between the two. The recent rally saw Bitcoin trading close to $81,438, reflecting a nearly 6% increase in just 24 hours.
Updated 22:31 UTC
Recent Developments in Bitcoin ETFs
- BlackRock’s iShares Bitcoin Trust (IBIT) experienced a nearly 6% surge, driven by approximately $300 million in daily net inflows.
- On August 27, IBIT attracted $277.6 million in net inflows, surpassing the entire US spot Bitcoin ETF category’s net inflow of $242 million for that same day.
- On September 2, IBIT brought in $115.4 million, coinciding with a $236.5 million outflow from the broader category.
- In August, total inflows for the US spot Bitcoin ETF category reached around $3.5 billion, with IBIT capturing between 70% and 90% of total flows during peak periods.
- IBIT’s assets under management (AUM) are now estimated at $60 billion, with cumulative net inflows since its January 2024 launch exceeding $63 billion.
- The total AUM for the entire US spot Bitcoin ETF category has approached $97 billion to $100 billion, with IBIT accounting for roughly 60% of this total.
- Bitcoin's price has been stable in the mid-to-high $70,000s, with sustained ETF inflows creating a structural demand floor not seen in previous market cycles.
FAQ
What are the new products being launched by Bitwise in collaboration with Hargreaves Lansdown?
Bitwise is launching Bitcoin and Ethereum exchange-traded products (ETPs) in collaboration with Hargreaves Lansdown, enabling retail investors in the UK to access these crypto-backed investment options.
When will retail investors in the UK be able to access Bitwise's Bitcoin and Ethereum ETPs?
Retail investors will be able to access Bitwise’s Bitcoin and Ethereum ETPs starting October 21, 2025, following the lifting of the Financial Conduct Authority's restrictions.
What is the Total Expense Ratio reduction for Bitwise's Core Bitcoin ETP?
Bitwise has reduced the Total Expense Ratio on its Core Bitcoin ETP (ticker: BTC1) by 75%, making it one of the most competitively priced Bitcoin ETPs in Europe.
What regulatory changes allowed for the launch of these ETPs?
The Financial Conduct Authority (FCA) lifted its ban on retail access to crypto-backed ETPs in October 2025, which previously restricted such products to professional and institutional investors.
What is the FCA's recommended portfolio allocation for crypto products?
The FCA recommends a cap of 10% portfolio allocation to crypto products, reflecting its stance that crypto should be treated as a supplementary investment rather than a core holding.
Comments
Comments are moderated before publish.
No comments yet — be the first.