Crypto currency may sound like something from a science fiction movie or Series 11 of Doctor Who, which will see Jodie Whittaker become the first female Doctor, but the reality is investors are piling a lot of money into these vehicles.

Crypto currencies such as Bitcoin, invented by Satoshi Nakamoto in 2009, are digital currencies, created and held electronically, with no physical note or coins. They have tended to be produced by people or businesses involved in the computer industry using mathematical software.

It isn’t just Bitcoin, there are many others including Ethereum, Litecoin, Z-cash and Monero. One important difference between conventional currencies and crypto currencies is that they are decentralised. There is no single institution controlling the currency, such as the Bank of England that controls Sterling in the UK.

Jamie Dimon, CEO of JP Morgan waded into the debate a couple of weeks ago and publically stated that Bitcoin is a “fraud”. The result has seen the crypto currency sector up in arms, a fall in price and there has been a ‘market abuse’ report filed with the Swedish Financial Supervisory Authority for market manipulation. Jamie Dimon even went as far as to say that he would fire anyone that traded in Bitcoin for being ‘stupid’.

China has gone even further and banned initial coin offerings (ICO) and has stated that those that have completed ICO fundraisings should make arrangements to return funds.

You may wonder why I am writing about crypto currencies, not something that you would necessarily associate with a SIPP, but there appears to be a growing trend in the number of enquiries being received by SIPP providers from clients, even though it is an unregulated investment. Don’t get me wrong, providers aren’t being deluged by enquiries, but we are hearing of a sharp increase and it is important that as an industry we are aware of this trend and act accordingly. This is echoed on the Association of Member-Directed Pension Schemes (AMPS) website where forum posts discuss the increase in enquiries.

Crypto currency investing is a worrying trend for a number of reasons, one of which is that from advisers that I have spoken to, clients seem to be seeing positive headlines and jumping on the bandwagon. They are an allowable investment within a SIPP, one very large investment firm has been promoting them as an investment option, but it should be remembered that it will be considered a non-standard asset, as it isn’t on a recognised exchange, and as such will impact on a SIPP operator’s capital adequacy. This means that most SIPP providers won't accept them at all..

Given the regulator’s concerns about non-standard assets, each firm will need to think carefully about whether they allow this investment and the implications on the client and also their own firm.

Elaine Turtle is director of DP Pensions