Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, thanks to fintech startup Stratiphy. The company will provide access to three ETNs from 21Shares, including those tracking bitcoin, ether, and a BTC and gold combination, within a special class of individual savings account (ISA).
This development allows users to save up to £20,000 per year without incurring income tax or capital gains tax on returns. Stratiphy's platform enables users to personalize their investment strategies and offers both crypto ETNs and Innovative Finance ISAs (IFISAs).
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. Stratiphy manages £4 million for 2,000 retail and corporate clients and will provide the new ETN offerings, which CEO Daniel Gold believes offer a unique way to diversify portfolios with low correlation to other asset classes.