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 ETNs and Innovative Finance ISAs, allowing users to personalize their investment strategies.
ISAs enable users to save up to £20,000 per year without incurring income tax or capital gains tax on returns. Stratiphy will offer three ETNs from 21Shares, including those tracking bitcoin, ether, and a combination of BTC and gold. This development comes after the UK's tax authority, HMRC, classified crypto ETNs as instruments only available in IFISAs from the start of the current tax year.
Stratiphy, which manages £4 million for 2,000 clients, sees significant interest in these crypto products, citing their potential to diversify portfolios with low correlation to other asset classes.