Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free wrapper, thanks to fintech startup Stratiphy's individual savings account (ISA) offering. Stratiphy, which allows users to personalize investment strategies, provides both crypto ETNs and Innovative Finance ISAs, as reported by the Financial Times. ISAs enable users to save up to £20,000 annually without incurring income tax or capital gains tax on returns. The UK's tax authority, HMRC, had classified crypto ETNs as IFISA-only instruments from the start of the current tax year.
However, with Stratiphy's offering, investors can now access three 21Shares ETNs: bitcoin, ether, and a combination of BTC and gold. Stratiphy, which manages £4 million for 2,000 clients, has seen significant interest in these products, with CEO Daniel Gold stating they offer a unique way to diversify portfolios with low correlation to other asset classes.