An Opinium poll on Wednesday showed that more than nine out of ten independent financial advisors (IFA) in the UK would never recommend cryptocurrencies or so-called meme stocks to their clients.

As home rules and high savings rates during the pandemic have triggered a surge in stock investment by non-professionals, the popularity of Meme stock (a company whose value is followed by social media) and digital coins has soared.

However, a poll based on 200 IFA samples in the United Kingdom shows that 93% of IFAs would never recommend investing in cryptocurrencies, and 95% would never recommend investing in cryptocurrencies.

It found that if customers said they were investing in any type of asset, about 91% of IFA would be worried, which shows that they are deeply worried in the context of high volatility and close attention from regulators.

The survey shows that one-third of IFAs this year have increased customer interest in cryptocurrencies, and 14% of people reported an increase in interest in meme stocks.

Bitcoin is the largest cryptocurrency. It has fallen by about 40% since it hit a record high of nearly US$65,000 (approximately 4.79 million rupees) in April, but still rose by 40% in 2021. The price of Bitcoin in India is rupee. As of 12:30 PM US Standard Time on June 17, 2.88 million.

Smaller cryptocurrencies such as ether are also unstable, which has triggered warnings from central banks and regulators that investors may lose money. The price of Ether in India is rupee. As of June 17, 12:45 PM US Standard Time, 179,000.

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Both professional and retail investors have embraced cryptocurrency this year as a hedge against inflation, a future payment method, and a tool to earn quick returns.

Vanda Research analysts said last week that in the past two weeks, retail traders have invested as much money in meme stocks as they did during the peak of GameStop’s crazy rebound in January.

The most notable of these are the American video retailers Gamestop and AMC Entertainment Holdings.

At the height of the trading frenzy, several retail brokers restricted purchases of GameStop stock after the collateral requirements needed to clear transactions soared, which angered traders and spurred congressional hearings and regulatory investigations.

© Thomson Reuters 2021

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