Following approval, UK investors can once again utilize tax-free accounts to hold cryptocurrency exchange-traded notes, thanks to fintech startup Stratiphy's new offering. Stratiphy allows users to create personalized investment strategies and is providing both crypto ETNs and Innovative Finance ISAs. These ISAs enable 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 restricted crypto ETNs to IFISAs from the start of the current tax year.
This move had rendered last year's decision to lift the ban on retail access to crypto ETNs redundant. Stratiphy will offer access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of bitcoin and gold. With £4 million in assets under management for 2,000 clients, Stratiphy's CEO Daniel Gold noted a significant interest in these products, citing their potential to diversify portfolios as a new asset class with low correlation to other classes.