Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, thanks to fintech startup Stratiphy. This development allows users to personalize their investment strategies through Stratiphy's platform, which offers both crypto ETNs and Innovative Finance ISAs. ISAs enable users to save up to £20,000 annually without incurring income tax or capital gains tax on returns.
Stratiphy will provide access to three ETNs from 21Shares, including those tracking bitcoin, ether, and a BTC-gold combination. The UK's tax authority, HMRC, had previously classified crypto ETNs as only available in IFISAs from the start of the current tax year. This move had rendered last year's decision to lift the ban on retail users accessing crypto ETNs redundant, as no mainstream platforms offered IFISAs with crypto products.
Stratiphy, which manages £4 million for 2,000 clients, aims to cater to the growing interest in crypto products, which offer a new asset class with low correlation to other assets, making them an attractive way to diversify portfolios.