UK investors can once again benefit from tax-free cryptocurrency investments after Stratiphy, a fintech startup, was approved to offer them in a specialized individual savings account. This development allows investors to hold cryptocurrency exchange-traded notes (ETNs) without incurring tax liabilities. Stratiphy, which enables users to personalize their investment strategies, is providing access to both crypto ETNs and Innovative Finance ISAs (IFISAs). These ISAs permit users to save up to £20,000 annually without paying income tax or capital gains tax on the returns.
Following the UK tax authority's decision to classify crypto ETNs as IFISA-eligible from the start of the current tax year, Stratiphy's approval fills a gap in the market. Previously, no mainstream investment platforms offered IFISAs with crypto products, rendering last year's decision to lift the ban on retail access to crypto ETNs ineffective. Stratiphy will offer three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold. With £4 million in assets under management for 2,000 clients, Stratiphy's CEO, Daniel Gold, noted a significant interest in these crypto products, highlighting their potential for portfolio diversification with low correlation to other asset classes.