Plus500 stock spikes after the item says cryptocurrency boom boosted profits

Shares of spread-betting firm Plus500 surged Wednesday after the item said the item had benefited by increased interest in cryptocurrencies.

Plus500 said in a trading update the item had achieved record quarterly revenues inside fourth quarter of 2017, along with an extra 246,000 customers, owed in part to its cryptocurrency contracts for difference (CFD). CFDs let traders bet on the cost movement of an asset without owning the underlying asset.

The company, which will be headquartered in Israel yet listed on the London Stock Exchange’s Alternative Investment Market (AIM), said its cryptocurrency CFDs had seen “strong volumes” as investors have shown increasing interest in digital currencies like bitcoin.

Plus500’s stock was trading at £10.60 ($14.38) a share at about 12:30 p.m. London time (7:30 a.m. ET), along with was up 20 percent for the session.

yet both spread-betting along with cryptocurrencies have come under fire by regulators in recent months due to their high-risk nature.

The European Securities along with Markets Authority (ESMA) said in December which the item was considering a crackdown on CFDs along with binary options, which allow people to speculate on asset cost moves over a period of time.

The U.K.’s Financial Conduct Authority has warned investors over bitcoin trading, along with has said which buyers should be prepared to lose all their money.

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