Over nine in ten IFAs would avoid recommending investing in cryptocurrency to their clients, according to a new report.

Two thirds of advisers surveyed (65%) said they had clients who have lost money as a result of investing in cryptocurrencies.

Seven in ten (71%) have had clients consider investing in cryptocurrency who have since changed their mind, according to the survey by Opinium.

For client who had been seeking advice from IFAs regarding cryptocurrency, 13% got in touch for advice on financial struggles as a result of a failed cryptocurrency investment.

Over half of advisers (52%) had clients who are uncomfortable or worried about their financial position due to their cryptocurrency investments.

Over a quarter (28%) of advisers reported a decrease in the rate of cryptocurrency enquiries in the last three months.

A third of advisers had clients who have sold their cryptocurrency investments and will not reinvest.

The most common cryptocurrencies clients who had lost money had invested in were Bitcoin (93%), Ethereum (32%) and Dogecoin (17%).

The majority (76%) of advisers surveyed said they were not personally interested in investing in cryptocurrency, with only a third (34%) thinking cryptocurrency values will recover.

Alexa Nightingale, head of financial services research at consultancy Opinium, said: “Given the recent crypto crash and the volatility of the market more generally, it is no surprise that IFAs are encountering clients who have either already given up on crypto investment or are concerned about their current position."

Opinium surveyed 136 financial advisers with clients who have invested, or enquired about investing, in cryptocurrency between 3 and 9 August.