Almost All UK Financial Advisors Avoid Cryptos and ‘Meme Stocks’ – Opinium

LONDON, June 16 (Reuters) – More than nine in ten UK independent financial advisers (IFAs) would never recommend cryptocurrencies or so-called memes to their clients, an Opinium poll found on Wednesday.

Meme stocks – companies whose value is fueled by social media attention – and digital coins have grown in popularity as stay-at-home rules and high savings rates during the pandemic sparked a surge investments in shares by non-professionals.

Yet 93% of IFAs would never recommend investing in cryptocurrencies, while 95% would never recommend investing in stocks even, the survey based on a sample of 200 UK IFAs showed.

About 91% of IFAs would be worried if a client said they invest in one or the other type of asset, he found, suggesting deep concerns amid high volatility and close attention. regulators.

Still, a third of IFAs have increased customer interest in cryptocurrencies this year, with 14% reporting higher interest in stocks even, according to the survey.

Bitcoin, the largest cryptocurrency, has fallen about 40% since reaching an all-time high of nearly $ 65,000 in April, but is still up 40% in 2021.

Smaller cryptocurrencies such as Ether have been equally volatile, triggering warnings from central banks and regulators that investors could lose their money.

Professional and retail investors have embraced cryptocurrencies this year, seeing the industry as a hedge against inflation, a future payment method, and a way to make quick wins.

Retail traders have invested as much money in stocks even over the past two weeks as they did during the height of GameStop’s frenzied rally in January, analysts at Vanda Research said last week.

Among the most prominent are US video retailer Gamestop Corp (GME.N) and AMC Entertainment Holdings (AMC.N).

At the height of the trading mania, several retail brokers restricted the purchase of GameStop shares after collateral requirements needed to clear trades increased, angering traders and spurring congressional hearings and regulatory inquiries. .

Reporting by Tom Wilson Editing by Mark Potter

Our standards: Thomson Reuters Trust Principles.

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