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 invest in crypto ETNs through a special class of individual savings account (ISA). Stratiphy, a platform that enables personalized investment strategies, will offer both crypto ETNs and Innovative Finance ISAs (IFISAs). ISAs permit 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 classified crypto ETNs as instruments available only in IFISAs from the start of the current tax year. However, with Stratiphy's offering, investors can now access these products.
Stratiphy will provide access to three ETNs from 21Shares, including those covering bitcoin, ether, and a combination of BTC and gold. The platform, which manages £4 million for 2,000 clients, has seen significant interest in these products. According to CEO Daniel Gold, crypto investments offer a unique way to diversify portfolios due to their low correlation with other asset classes.