UK investors can once again benefit from tax-free cryptocurrency investments after Stratiphy, a fintech startup, received approval to offer exchange-traded notes (ETNs) in a specialized individual savings account (ISA). According to the Financial Times, Stratiphy will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold. ISAs allow users to save up to £20,000 per year without incurring income tax or capital gains tax on returns. This development comes after the UK's tax authority, HMRC, classified crypto ETNs as instruments only available in Innovative Finance ISAs from the start of the current tax year.
Stratiphy, which manages £4 million for 2,000 clients, will offer both crypto ETNs and IFISAs, allowing users to diversify their portfolios with a new asset class that has low correlation to other asset classes.