93% of UK IFAs Would Never Recommend Crypto But They are Seeing Increased Interest from Clients

Despite the fact that the central bank continues their money printing, BoE Governor is concerned about managing $1.4 trillion of government bond purchases and inflation unexpectedly hitting 2.1% in May.

UK’s independent financial advisors (IFAs) aren't interested in cryptocurrencies and don’t want their clients to be interested either.

According to an Opinium poll, more than nine in ten IFAs in Britain said they would never recommend cryptocurrencies or the meme stocks to their clients.

Based on a sample of 200 IFAs in the UK showed 93% of them would never recommend investing in cryptocurrencies, while 95% won’t do so for meme stocks.

Analysts at Vanda Research said last week that retail traders had put as much money into meme stocks over the past two weeks as they did at the peak of GameStop’s (GME) frenzied rally in January.

Since the March sell-off of 2020 due to the black swan event of the coronavirus pandemic that sent the prices of all the asset classes crashing, Bitcoin has rallied more than 1,500% while the total cryptocurrency market cap has grown to $1.7 trillion from just $135 billion.

And yet, the IFAs do not want their clients to invest in crypto while the central banks around the world eased their monetary policy.

Just this week, Bank of England Governor Andrew Bailey said managing $1.4 trillion of government bond purchases will be one of the central bank's biggest challenges in the aftermath of the pandemic. “That is substantially bigger than the Bank of England balance sheet in the past,” he said.

British inflation also hit 2.1% unexpectedly in May, above BoE’s target.

Meanwhile, about 91% of IFAs said they would be concerned if a client wanted to invest in either type of asset due to high volatility and close attention from regulators.

Still, a third of IFAs have seen increased interest in cryptocurrencies from clients this year, with 14% reporting higher interest in meme stocks, the poll showed.

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