More than nine in ten independent financial advisers (IFAs) in Britain would never recommend cryptocurrencies or so-called meme stocks to their clients, an Opinium poll showed on Wednesday.
Meme stocks -- companies whose value is fueled by social media attention -- and digital coins have soared in popularity as stay-at-home rules and high savings rates during the pandemic triggered a surge in stock investing by non-professionals.
For the latest headlines, follow our Google News channel online or via the app.
Yet 93 percent of IFAs would never recommend investing in cryptocurrencies, while 95 percent would never do so for meme stocks,
the poll based on a sample of 200 IFAs in the UK showed.
Some 91 percent of IFAs would be concerned if a client said they were investing in either type of asset, it found, suggesting deep-set worries amid high volatility and close attention from regulators.
Still, a third of IFAs have increased interest in cryptocurrencies from clients this year, with 14 percent reporting higher interest in meme stocks, the poll showed.
Bitcoin, the biggest cryptocurrency, has slumped about 40 percent since hitting an all-time high of nearly $65,000 in April, but is still up 40 percent in 2021.
Smaller cryptocurrencies such as ether have been similarly volatile, sparking warnings from central banks and regulators that investors could lose their money.
Professional and retail investors alike have embraced cryptocurrencies this year, seeing the sector as a hedge against inflation, a future payment method and a vehicle for earning quick gains.
Retail traders have put as much money into meme stocks over the past two weeks as they did at the peak of the frenzied GameStop rally in January, analysts at Vanda Research said last week.
Among the highest profile are US video-retailer Gamestop Corp and AMC Entertainment Holdings.
At the height of the trading mania, several retail brokers restricted the buying of GameStop shares after collateral requirements needed to clear the trades spiked, angering traders and spurring congressional hearings and regulatory probes.
Spread of cryptocurrencies without clear regulation is cause for concern: RegulatorThe spread of cryptocurrencies without any clear regulation is a cause for concern and could damage the way the market operates, the head of Italy’s ... Technology
‘CryptoPunk’ NFT digital artwork sells for $11.8 million, says Sotheby’sA non-fungible token (NFT) of a digital artwork called a “CryptoPunk” was sold for $11.8 million on Thursday, according to a tweet by auction house ... Art and culture
Dubai’s DMCC launches new crypto center to leverage blockchain technologyDubai’s Multi Commodities Center (DMCC) opened a new Crypto Center to accommodate businesses operating in the blockchain and cryptographic sectors, ... Technology
Lobby group says UK must speed up crypto rules to win businessBritain must speed up protections for cryptoassets that are exposing retail consumers to volatile markets, according to TheCityUK, a lobby group for ... Technology
Elon Musk tweets support for cryptocurrencies compared to traditional currencyElon Musk is again tweeting about technology and cryptocurrencies, and this time he’s clear on where his support is at.For the latest headlines, ... World News
Cryptocurrency ether hits record high as 2021 gains near 500 percentCryptocurrency ether hit a record high on Wednesday, taking gains this year to almost 500 percent on the back of a growing interest in decentralized ... Financial Markets