Following approval, UK investors can once again benefit from tax-free cryptocurrency exchange-traded notes (ETNs) through fintech startup Stratiphy's individual savings account (ISA) offering. Stratiphy, a platform that enables personalized investment strategies, will provide both crypto ETNs and Innovative Finance ISAs (IFISAs).
ISAs allow 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 previously classified crypto ETNs as IFISA-exclusive from the start of the current tax year. This development has made last year's decision to lift the ban on retail access to crypto ETNs redundant, as no major platforms offered IFISAs with crypto products.
Stratiphy will offer access to three 21Shares ETNs: bitcoin, ether, and a BTC-gold combination. With £4 million in assets under management for 2,000 clients, Stratiphy's CEO Daniel Gold noted significant interest in these products, citing their potential for portfolio diversification and low correlation to other asset classes.