Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, courtesy of fintech startup Stratiphy, which has been given the green light to offer them in a special class of individual savings account. Stratiphy, a platform allowing users to personalize investment strategies, will provide crypto ETNs and Innovative Finance ISAs.
ISAs enable users to save up to £20,000 annually without paying income tax or capital gains tax on returns. Recently, the UK tax authority classified crypto ETNs as instruments available only in IFISAs from the start of the current tax year. This move made last year's decision to lift the ban on retail users accessing crypto ETNs redundant, as no mainstream platform offered IFISAs with crypto products. Stratiphy will offer access to three 21Shares ETNs: bitcoin, ether, and a combination of BTC and gold.
The platform, which opened in August last year, manages £4 million for 2,000 clients and sees significant interest in these products as a way to diversify portfolios with a new asset class.