Investors in the UK can once again benefit from tax-free cryptocurrency exchange-traded notes (ETNs) within a specialized individual savings account (ISA) after Stratiphy, a fintech startup, received approval to offer them, as reported by the Financial Times. Stratiphy, which enables users to personalize investment strategies, is providing both crypto ETNs and Innovative Finance ISAs (IFISAs), the authorized wrapper for such investments. These ISAs allow users to save up to £20,000 annually without incurring income tax or capital gains tax on returns.
Following a classification by the UK's tax authority, HMRC, at the end of February, crypto ETNs are now considered instruments available only in IFISAs from the start of the current tax year. This move essentially rendered redundant the previous year's decision to lift the ban on retail access to crypto ETNs, as no major investment platform offered IFISAs with plans for crypto products. Stratiphy will provide access to three 21Shares ETNs: bitcoin, ether, and a combination of BTC and gold.
With £4 million in managed assets for 2,000 clients, Stratiphy's CEO, Daniel Gold, noted a significant interest in these products, highlighting their potential for diversifying portfolios as a new asset class with low correlation to other classes.