UK Investors Can Now Hold Bitcoin in Tax-Free Accounts

Following approval, UK investors can once again invest in cryptocurrency exchange-traded notes (ETNs) through a tax-free vehicle, thanks to fintech startup Stratiphy's recent authorization to offer them in a special class of individual savings account (ISA). Stratiphy, a platform that enables users to personalize their investment strategies, will provide both crypto ETNs and Innovative Finance ISAs (IFISAs), as reported by the Financial Times. ISAs allow users to save up to £20,000 per year without incurring income tax or capital gains tax on returns. At the end of February, the UK's tax authority classified crypto ETNs as instruments only available in IFISAs from the start of the current tax year. This move had previously made the decision to lift the ban on retail users accessing crypto ETNs redundant. Stratiphy will offer access to three ETNs provided by 21Shares, covering bitcoin, ether, and a combination of bitcoin and gold. The London-based investment platform, which launched in August last year, currently manages £4 million for 2,000 retail and corporate clients. According to CEO Daniel Gold, there is a significant level of interest in these crypto products, which offer a unique way to diversify portfolios with low correlation to other asset classes.