Investors in the UK can once again utilize cryptocurrency exchange-traded notes (ETNs) in a tax-advantaged account, thanks to Stratiphy's approval to offer them in an Innovative Finance Individual Savings Account (ISA). This development comes after the fintech startup received the necessary authorization, as reported by the Financial Times. Stratiphy's platform enables users to customize their investment strategies and will provide access to both crypto ETNs and IFISAs.
ISAs allow users to save up to £20,000 per year without incurring income tax or capital gains tax on the returns. The UK's tax authority, HMRC, had previously classified crypto ETNs as instruments only available in IFISAs from the start of the current tax year. However, this decision had limited impact due to the lack of mainstream investment platforms offering IFISAs.
Stratiphy will offer three ETNs provided by 21Shares, covering bitcoin, ether, and a combination of BTC and gold. With £4 million in assets under management for 2,000 retail and corporate clients, Stratiphy's CEO, Daniel Gold, noted that there is significant interest in these products, citing their potential to diversify portfolios as a new asset class with low correlation to other asset classes.